Wilex to implement cost-cutting, reduce workforce 80%
Wilex, a biopharmaceutical company based in Munich, Germany, will implement extensive cost-cutting measures and focus on contract research and the ADC technology at its subsidiary Heidelberg Pharma. This decision was taken with the approval of the company's supervisory board.
Clinical development activities will be discontinued stepwise, and the workforce will be reduced by 80% to 10 employees in Munich. Work will continue on the commercial exploitation of the company's advanced clinical programs. These measures became necessary to extend the company's cash reach. At the moment, Wilex's financing is sufficient to take the company into the third quarter of 2014. These measures will extend the cash reach to at least the second half of 2015.
Despite intensive efforts to obtain project funding and licensing partnerships, Wilex has been unable to generate sufficient cash to justify and guarantee maintaining its current scope of business activities. The financing required to start the phase III trials for RENCAREX and REDECTANE has not been secured.
A core team will remain in Munich to continue ongoing negotiations on marketing or financing the MESUPRON, RENCAREX and REDECTANE projects. Heidelberg Pharma in Ladenburg will continue to develop and market customer-specific contract research operations, and the ADC technology in particular, generating revenue for the group.
Thomas Borcholte, Wilex's chief business officer since 2007, stepped down when his employment contract ended Dec. 31. He will continue as a consultant on specific ongoing and future projects.
Professor Olaf Wilhelm said, "In recent months, we have reviewed with the help of the supervisory board and our consultants all options that would have ensured continuation of our clinical activities and commercial exploitation of our advanced clinical product candidates. We are in continuous negotiations with potential partners, but to date we have been unable to close a contract. In order to secure a promising future for our company, we have been forced to drastically streamline the Wilex Group's costs and re-define our future direction. This has resulted in painful workforce reductions. We would like to sincerely thank all of our colleagues affected by these cuts for their many years of dedication and their professional contributions to Wilex."