Zynaxis Inc. is reducing its staff by 25 percent in an effort to saveabout $3 million annually and is narrowing its product developmentfocus.The personnel cuts will reduce the Malvern, Pa.-based company'sstaff from 78 to 59 and will significantly lower Zynaxis' currentburn rate of about $800,000 a month.Zynaxis Chairman and CEO Martyn Greenacre told BioWorldreducing expenses will help ensure the company has the resourcesto commercialize its Zymmune CD4/CD8 cell monitoring kit forHIV and AIDS patients. A marketing application for the productwas submitted to the FDA in April 1993.Greenacre said Zynaxis also will continue work on its Zyn-Linkerdrug delivery system for oligonucleotides and anti-cancer agents.The company, he added, plans to file an investigational new drugapplication in the first quarter of 1996 to begin clinical trials forcancer.Zynaxis has conducted pre-clinical studies for applications of theZyn-Linker technology in restenosis and rheumatoid arthritis, butGreenacre said further development will be put on hold for thoseindications until financial collaborations can be negotiated."As we go forward, we believe we have a major drug deliverysystem," Greenacre said. "The important thing is to get it in activedevelopment with some corporate partners."The Zymmune monitoring kit already is available in Canada, Brazil,Spain, Italy, Germany, Switzerland, Greece and the U.K. Greenacreestimated the potential North American market for the product wasabout $75 million.He said Zynaxis has $4.4 million in cash and 5.2 million sharesoutstanding. The company's stock (NASDAQ:ZNXS) closedTuesday at $2, unchanged. _ Charles Craig

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