Progenics Pharmaceuticals Inc. (PGNX) announced a companywide restructuring, including a reduction of its workforce. Headcount was reduced by 26% to 77 employees. Annual cash expenditures will be reduced by an estimated $8 million after restructuring and severance costs, the company said.
The company said it will continue to focus its resources and efforts on its oncology programs, particularly an upcoming phase 2 study of PSMA ADC in prostate cancer patients.
As part of the restructuring, Chief Financial Officer 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, the company said.
The company said it is terminating several early stage research projects. Preclinical research will continue in the company's PI3K program. Clinical development and manufacturing capabilities are unaffected by the reduction.
The company noted that workforce reduction reflects termination of the early stage research, last year's out-licensing of Relistor to Salix Pharmaceuticals and planned divestitures of the previously discontinued PRO 140 and C. difficile programs.
The company stated that the actions followed the U.S. Food and Drug Administration's issuance of a Complete Response Letter related to a Supplemental New Drug Application for use of subcutaneous Relistor in patients with chronic, non-cancer pain.
Under the terms of its agreement with partner Salix Pharmaceuticals, Progenics is entitled to a $40 million milestone upon regulatory approval of Relistor for this indication.
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