Progenics undergoes restructuring, cuts 26% of workforce

Friday, September 21, 2012 02:15 PM

Progenics Pharmaceuticals, a Tarrytown, N.Y.-based biopharmaceutical company focused on cancer and related conditions, has announced companywide restructuring, including a reduction of its workforce. The company will continue to focus its resources and efforts on its oncology programs, particularly an upcoming phase II study of PSMA ADC in prostate cancer patients.

The restructuring actions include a reduction in annual cash expenditures by an estimated $8 million and a headcount reduction of 26%, with 77 employees remaining. The workforce reduction reflects termination of several early stage research projects, last year's out-licensing of Relistor to Salix Pharmaceuticals, and planned divestitures of the previously discontinued PRO 140 and C. difficile programs. Preclinical research will continue in the company's PI3K program and clinical development and manufacturing capabilities will be unaffected by the restructuring.

Furthermore, CFO Robert McKinney and senior vice president of quality Benedict Osorio are stepping down, effective September 30. Senior executive director and treasurer Angelo Lovallo will become principal financial officer and principal accounting officer.

"This restructuring reflects our commitment to strategic goals we announced a year ago, when we directed our resources toward addressing the growing need for novel and improved cancer therapies,” said Mark R. Baker, CEO of Progenics. “Our top clinical priority remains advancing PSMA ADC, while continuing to evaluate strategic in-licensing opportunities. While I believe this restructuring is the right next step in Progenics' ongoing efforts to benefit patients and shareholders, it is difficult to part with colleagues who have made significant contributions.”

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