Scios Nova Inc. announced Thursday that it is eliminating 44positions -- 12 percent of its total work force. Scios said itexpects to incur a one-time charge of approximately $850,000associated with the layoffs.

The company said the across-the-board cuts were part of itsstrategy "to direct the company's resources to those areas inwhich it has strong product candidates, competitive advantagesand technological expertise."

Specifically, Scios (NASDAQ:SCIO) of Mountain View, Calif., isfocusing on development of acute-care products, primarily inthe areas of cardiorenal disease and inflammation. Theseinclude Auriculin atrial natriuretic peptide, currently in aPhase III 500-patient trial for treatment of acute renal failure,and Natrecor brain natriuretic peptide for treatment of acutecongestive heart failure. The company said it plans to beginclinicals with the latter compound within the next few months.

Scios' primary research efforts are now focused on bradykininantagonists and leukocyte adhesion inhibitors. The companyexpects to begin clinical development of a bradykininantagonist for an acute inflammatory condition within 12 to 18months.

Research programs outside the company's strategic focusinclude basic fibroblast growth factor (bFGF), currently inPhase II trials in two forms of soft tissue. Scios said it will seeka partner for further development of the drug.

The company already has corporate partners for the other twoareas now outside its focus. Pfizer Inc. is doing clinical trialswith Scios' insulinotropin, and Marion Merrell Dow Inc. isconducting research in Alzheimer's disease under a 1992agreement with Scios.

Scios said it plans to increase cash flow over the next severalyears by acquiring additional products to market through itscommercial operation. It markets four psychiatric products thatare manufactured and distributed by SmithKline Beecham:Thorazine, Stelazine, Eskalith and Parnate, and it co-promotesHaldol deconate with McNeil Labs. Scios said its commercialoperation generated $5 million in cash in 1992 from sales ofthe four SKB products.

The company had more than $115 million in cash as of Sept.30.

Its stock closed at $10.75 a share on Thursday, down 63 cents.-- Brenda Sandburg

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