Genta Inc. said it has laid off 35 people since the beginning of 1995and plans to trim some programs to reduce expenses by up to $6million per year. The company will focus on its Geomatrix drugdelivery pipeline and Anticode cancer drugs.

Thomas Adams, chairman and CEO of the San Diego company, saidthe work force reductions represented a 25 percent cutback of thecompany's 140 employees. Most of the layoffs occurred in theresearch and development area.

The restructuring, Adams said, is designed to save Genta between $1million and $1.5 million per quarter. The company's fourth quarterearnings report has not been released, but at the end of the thirdquarter, Sept. 30, 1994, Genta said it had $19.5 million in cash and aburn rate of about $5 million per quarter.

Geomatrix is a controlled-release, oral drug delivery system. Onepotential advantage of the technology is to allow patients to take oneor two daily formulations of drugs that normally would have to beadministered up to six times a day.

Genta is collaborating with Switzerland-based Jago Holding AGthrough their Genta-Jago Technologies B.V. joint venture to developtwo types of Geomatrix products, one mimicking brand-namecontrolled-release drugs and the other involving a reformulation ofmarketed, multiple-dose drugs.

Genta-Jago currently has six Geomatrix products in clinicaldevelopment, the most advanced of which is Geomatrix withnifedipine to treat hypertension and angina. That product is beingdeveloped in association with Gensia Inc., of San Diego.

Adams said the company restructuring will reduce Genta's Anticodecancer programs from eight to three, focusing on follicular lymphomaand drug resistant colon and breast cancers.

Anticode technology involves employing antisense and triple-stranded therapeutics to inhibit production of disease-related DNA.

Adams said Genta's Anticode collaboration with Proctor & GambleCo., of Cincinnati, also will continue. The two are developing thetechnology for infectious diseases and restenosis.

Other programs to be suspended are two involving dermatologyproducts. Following completion of Phase II studies of G201, a non-steroidal anti-inflammatory agent, and G301, a topical form ofmethotrexate for psoriasis, both will be discontinued until corporatepartners are found.

Genta intends to continue developing Actagen for acne and willsubmit an application for approval in France this year. Adams saidthe company is negotiating with various potential partners formarketing the drug.

Genta (NASDAQ:GNTA) closed Thursday at $4.50, down 25 cents.n

-- Charles Craig

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