OctoPlus to cut a quarter of its workforce

Dutch biopharmaceutical company OctoPlus is to slash its workforce of 150 by 25% as it seeks to improve profits.

The Leiden-based company says after consultation with its Works Council the cuts will be made across all areas of the business.

OctoPlus has devoted 2009 to becoming a drug delivery service business and chief executive Simon Sturge said the efficiency measures "will enable us to operate more competitively and help to broaden our client base."

"The aim is to diversify our revenue sources in both drug delivery and pharmaceutical services, aside from our current revenue stream from Locteron," he added. Locteron, a controlled release formulation of interferon alpha for the treatment of chronic hepatitis C, was licensed exclusively to Biolex Therapeutics in October 2008 and is currently in Phase IIb clinical trials.

Sturge said the measures would enhance the company's ability to build a "profitable service organisation, although the changes will prevent us from being operationally cash flow positive in the second half of the year".

The cuts are not expected to have an impact on 2009 revenue, which should be Euro 19m.

OctoPlus focuses on the development of long-acting, controlled release versions of known protein therapeutics, other drugs, and vaccines. It also provides advanced drug formulation and clinical scale manufacturing services, concentrating on difficult-to-formulate active pharmaceutical ingredients.