LONDON - British Biotech plc is axing 90 jobs in discovery research to trim #8 million per annum from the payroll and allow it to concentrate on drug development.

Elliot Goldstein, CEO of the Oxford-based company, said the move "is vital to focus our resources where we believe the greatest value can be created."

The cuts will leave the company with 140 staff, down from 450 three years ago. Fifty-one jobs will go immediately, with the balance over the next six months, leading to #8 million (US$12.1 million) in savings over 1999/2000. British Biotech's core research capability in metalloenzymes will be retained.

Goldstein said the savings will be used to broaden and progress the development portfolio. "Our clear objective is to expand and progress our product portfolio to create value for shareholders." The company has #72 million in cash.

The company's shares rose 1 pence to 24 pence when the announcement was made on Friday.

In addition to its lead product, Marimastat, an oral anticancer treatment, British Biotech has five products in development: BB-3644, a follow-on for Marimastat; BB-10153 for cardiovascular disease; BB-2827 for inflammation; huN901-DM1 for small-cell lung cancer; and BB-76163 for chronic inflammatory disease. - Nuala Moran