Biotech company (location)

Action taken

Details

Date

Addex Therapeutics SA (Geneva)

Company is evaluating steps to reduce its operating costs and work force to conserve cash while ADX71149 is being developed

The company has sufficient cash to last at least until the end of 2013

5/29/13

Affymax Inc. (Palo Alto, Calif.)

Company decided to let go of 75% of its employees following a voluntary recall of Omontys

Omontys was pulled from the market in February after reports of serious hypersensitivity reactions

3/20/13

Agennix AG (Munich, Germany)

Company is liquidating

In August 2012, its Talactoferrin alfa Phase III trial failed in non-small-cell lung cancer, leading to a restructuring and a 55% reduction in head count, plus the closure of the Houston site; the company could not find a merger and will dissolve May 31

5/29/13

Allon Therapeutics Inc. (Vancouver, British Columbia)

In accordance with the Order for Reorganization in Allon’s proposal proceeding under Canada’s bankruptcy act, Paladin Labs Inc., of Montreal, has become the sole shareholder of Allon

Allon failed to recover after its lead drug, davunetide, failed in a pivotal study in progressive supranuclear palsy late in 2012

7/18/13

Amicus Therapeutics Inc. (Cranbury, N.J.)

Amicus is trimming its work force, reducing it by 14%, to 91 employees and closed its San Diego research facility to consolidate operations in Cranbury, N.J.

Chief Scientific Officer David Lockhart stepped down from his position, though he will continue as a member of the scientific advisory board

11/22/13

Antisense Pharma GmbH (Munich, Germany)

Antisense changed its name to Isarna Therapeutics GmbH

It consolidated its activities to headquarters in Munich

10/1/13

Arena Pharmaceuticals Inc. (San Diego) and Eisai Inc. (Woodcliff Lake, N.J.)

Eisai plans to double the size of its Belviq sales force to approximately 400 by the end of the year

The expansion follows increases in coverage of the drug by health plans and pharmacy benefit managers since its launch; Belviq is approved in the U.S. for chronic weight management

10/16/13

Array Biopharma Inc. (Boulder, Colo.)

Array is undergoing a company-wide 20% reduction in staff, focused on its discovery organization

The downsizing will leave Array with about 200 employees

8/9/13

Astellas Pharma Inc. (Tokyo)

Company plans to close U.S. units OSI Pharmaceuticals LLC and Perseid Therapeutics LLC this year and to downsize Astellas Research Institute of America LLC to focus on central nervous system therapies

The company also plans to terminate its in-house fermentation research and, by fiscal 2015, to fold the operations of its Kashima facility in Osaka into other sites, including its Tsukuba (Japan) Research Center; the changes are expected to result in extraordinary losses of approximately ¥11 billion (US$107.6 million) in the fiscal year ending in March 2014

5/15/13

Astrazeneca plc (London)

Company plans to relocate 2,500 roles and cut about 1,600 jobs, mainly in the UK and U.S., as it consolidates discovery and development in Cambridge, UK; Gaithersburg, Md; and MoIndal, near Gothenburg, in Sweden

The aim is to increase the company’s R&D productivity and will cost a one-time restructuring charge of $1.4B, in addition to a $500M capital investment in Cambridge; it should save $190M per annum by 2016

3/19/13

Biota Pharmaceuticals Inc. (Rockville, Md.)

Restructuring under which it will shift its primary focus from early stage research to clinical-stage development programs

Immediate actions include rationalizing the preclinical programs, realigning its operations and resources, and reducing its work force by 30% over the next several quarters

4/16/13

Biovest International Inc. (Tampa, Fla.)

Company filed a petition for protection via Chapter 11 under the Bankruptcy Code and a plan of reorganization that would eliminate about $44M in senior secured debt held by Laurus/Valens Funds and Corp Real LLC

The reorganization also would provide up to about $5.6M in new operating funding; Biovest emerged from Chapter 11 reorganization, and Carlos F. Santos was promoted to CEO

3/11/13; 7/17/13

Celtaxsys Inc. (Atlanta)

Celtaxsys restructured its management and operations to focus on development of its lead clinical-stage drug candidate, CTX-4430, to treat cystic fibrosis

Michael Hanley has retired from his role as CEO and chairman

9/11/13

Endo Health Solutions Inc. (Malvern, Pa.)

Company is reducing annual operating expenses by $325M

It will cut about 15% of its work force and is exploring the sale of assets

6/7/13

Forest Laboratories Inc. (New York)

Company is enacting Project Rejuvenate – a series of strategic actions to streamline operations and reduce costs

The company expects to reduce operating expenses by $500M by the end of FY2016, achieved by streamlining and realigning the research and development organization, and trimming staff

12/3/13

Genentech Inc. (South San Francisco)

Genentech is investing more than $285M for the expansion of its biologics manufacturing facilities in Vacaville, Calif., and Oceanside, Calif., adding 250 more jobs over the next four years

This will bring the total number of Genentech manufacturing jobs in California to almost 3,000

10/15/13

Genvec Inc. (Gaithersburg, Md.)

Withdrew its plan of complete liquidation and dissolution adopted in May

Genvec will pursue a strategy focused on maximizing the value of its technology and assets

9/5/13

Geron Corp. (Menlo Park, Calif.)

Company is discontinuing its discovery research and companion diagnostics programs, closing its research laboratory facility and reducing its work force from 64 to 44 positions

While the reductions will produce cost savings in 2013, the company isn’t expecting a significant adjustment to the current operating budget due to restructuring charges of about $1.9M; the discontinued programs were expected to cost up to $19M in 2014 and 2015

4/30/13

Isotechnika Pharma Inc. (Victoria, British Columbia)

Company is undergoing a strategic restructuring, including staff reductions and changes to senior management

The company now operates as Aurinia Pharmaceuticals Inc. and is advancing voclosporin to market for lupus nephritis; it reduced its staffing levels in its Edmonton facility by about 30% and reduced its leased space by more than 50%

10/23/13

K-V Pharmaceutical Co. (St. Louis)

K-V’s plan of reorganization has become effective; the company has successfully emerged from Chapter 11 bankruptcy

Investors have provided a new $100M credit facility, and a $275M rights offering and direct purchase of new common shares

9/17/13

Maxygen Inc. (Redwood City, Calif.)

Company’s board approved the liquidation and dissolution of the company, subject to shareholder approval, and plans to distribute all available cash

Maxygen estimates the initial distribution will be between $68.2M and $69.6M, or between $2.45 to $2.50 per share, based on about 27M shares outstanding; Maxygen’s shareholders voted to approve liquidation and dissolution; Maxygen filed a certificate of dissolution

6/4/13; 8/14/13;

9/3/13

Novadel Pharma Inc. (Bridgewater, N.J.)

Novadel’s stockholders approved the sale of substantially all of the company’s assets to Suda Ltd., of Australia

Not enough stockholders gave approval for liquidation and dissolution of the company and that proposal did not pass; Novadel will therefore pursue other options

7/23/13

Nuvilex Inc. (Silver Spring, Md.)

Company restructured its corporate operations to focus on its biotechnology core business

The move was precipitated by the company’s recent acquisition of Bio Blue Bird AG

8/27/13

Ocera Therapeutics Inc. (San Diego)

Ocera plans to close its research center in Sherbrooke, Quebec, effective Nov. 11, following its merger with Transzyme Inc.

Ocera will retain full rights to the chemistry technology platform, MATCH, pursued at the center; the restructuring plan will allow Ocera to focus resources on advancing lead candidate, OCR-002, in hepatic encephalopathy associated with acute and chronic liver disease

9/19/13

Phytopharm plc (Godmanchester, UK)

Phytopharm is looking at its options after a Phase II failure in February of Cogane in Parkinson’s disease

It is moving toward a reverse merger with an unnamed health care company

5/29/13

Regado Biosciences Inc. (Basking Ridge, N.J.)

Regado is eliminating five of its 32 full-time employees, primarily in the drug discovery unit in the North Carolina facility, to enable the firm to focus on advancing REG1 in a Phase III program

The company expects to incur charges of about $254,225 in severance costs and noncash stock-based compensation charges

9/30/13

Rigel Pharmaceuticals Inc. (San Francisco)

Rigel is cutting its work force by 18%, trimming staff by 30 drug discovery positions

It will prioritize moving fostamatinib into Phase III trials against immune thrombocytopenic purpura, but it is not pursuing it in rheumatoid arthritis

9/6/13

Sirtris Inc. (part of Glaxosmithkline plc; London)

Company is losing its research facility in Cambridge, Mass.

GSK will close the discovery performance unit and move the work to its Upper Providence R&D site in Collegeville, Pa.

3/14/13

Theravance Inc. (South San Francisco)

Company is separating its businesses into two independently traded companies

One company, Royalty Management Co., will focus on development and commercial responsibilities under the LABA collaboration with Glaxosmithkline and royalty revenues from Relvar or Breo Ellipta, Anoro Ellipta and vilanterol monotherapy; the other company, Theravance Biopharma, will focus on discovery, development and commercialization of small-molecule drugs

4/29/13

Savient Pharmaceuticals Inc. (Bridgewater, N.J.)

Company filed for Chapter 11 voluntarily in the Bankruptcy Court for the District of Delaware, along with a motion seeking authorization to pursue a sale process

A “stalking horse bidder,” Sloan Holdings CV, has stepped up to acquire all of Savient’s assets, including gout drug Krystexxa for $55M; company disclosed the approval of its “first day” motions by the U.S. Bankruptcy Court, allowing company operations to continue uninterrupted; it reached an agreement in principal with the official committee of unsecured creditors (UCC) appointed in its bankruptcy filing and the unofficial committee of senior secured noteholders; the UCC is expected to withdraw its objection and consent to entry of a final order by the U.S. Bankruptcy Court for the District of Delaware authorizing Savient’s continued use of cash collateral; the proposed settlement includes $1.8M in cash to fund distributions to unsecured creditors under a confirmed plan of reorganization or liquidation, $100,000 in cash for the fees and expenses of the trustee for Savient’s convertible notes and 100% of proceeds received by Savient from a pending litigation with a major distribution customer to fund distributions to unsecured creditors

10/16/13; 10/18/13; 12/11/13

Synergy Pharmaceuticals Inc. (New York)

Synergy plans to spin off its FV-100 assets into a separate publicly traded company, Contravir Pharmaceuticals Inc., which has filed a Form 10 registration statement with the SEC

The separation contemplates a 100% distribution of the Contravir shares of common stock, now held by Synergy, to Synergy’s stockholders on a pro-rata basis

8/12/13

Transcept Pharmaceuticals Inc. (Point Richmond, Calif.)

Company plans to eliminate six positions, or about 43% of its work force, resulting in a reduction in annualized payroll and benefit expenses of about $865,000

The company also is eliminating one position on its board; the moves come after the company halted development of TO-2061 last year when it failed to meet its efficacy endpoint of improving obsessive compulsive disorder symptoms compared to placebo

11/14/13

Unigene Laboratories Inc. (Boonton, N.J.)

Company is reorganizing and downsizing; Victory Park Capital Advisors held a public auction for the sale of certain assets that secure about $56.7M in senior secured notes

It will reduce about 40% of its work force, mostly employees involved in the manufacturing of Fortical and recombinant calcitonin product operations, following regulatory recommendations in the U.S. and Europe requiring additional safety and efficacy data for use in osteoporosis

4/9/13

Vertex Pharmaceuticals Inc. (Cambridge, Mass.)

Company slashed 370 jobs, 15% of its work force

This is in response to patients turning from the hepatitis C drug Incivek to newer therapies, resulting in revenues plummeting to $85.6M from $254.3M a year ago

10/30/13

Vical Inc. (San Diego)

Company is cutting its work force by about 39%, or 47 employees, leaving 74 still aboard

It has abandoned the Allovectin project and is turning to infectious-disease vaccine programs

8/26/13

Notes

This chart contains publicly announced restructurings, scale-backs and bankruptcy filings of biotech companies that occurred in 2013 and that were published in BioWorld Today. The date indicated refers to the BioWorld Today issue in which the news item can be found.