SciClone Pharmaceuticals has opted to cut down on pharmaceutical jobs following the discontinuation of SciClone’s RP101 phase 2 clinical trial.
The Foster City, California-based biopharmaceutical company has decided to reduce its US-based workforce by approximately 17%, primarily in research and development.
The company didn’t officially state how many jobs would be cut. But, according to a report filed by The AP, the company had 227 employees at the end of last year.
Friedhelm Blobel, Ph.D., president and chief executive officer, highlighted that the company has been focusing on containing costs and closely managing expenses this year. In this context, the decision to reduce the workforce in the wake of the RP101 trial discontinuation was inevitable.
As a result of the restructuring, SciClone anticipates incurring a one-time severance-related charge of approximately $0.3 million, which includes severance and other expenses associated with the workforce reduction plan.
SciClone expects to complete the restructuring in the fourth quarter.
SciClone sells Zadaxin, a drug approved in China and other overseas markets, to treat hepatitis B infections and to boost the immune systems of other patients, including those with liver cancer.
RP101, also known as BVdU, is a nucleoside analog which has shown, in several preclinical and clinical studies, the potential to prevent the induction of resistance to chemotherapy by suppressing genes involved in development of that resistance and enhancing sensitivity to chemotherapy.
Last month, the company announced the discontinuation of the investigational treatments under its randomized, placebo-controlled, double-blind Phase 2 trial that is evaluating RP101—a nucleoside analog known as BVdU—for the treatment of late-stage pancreatic cancer. This decision followed the recommendation of the Data Safety Monitoring Committee (DSMC) with oversight responsibility for this clinical trial that was based upon the data reviewed at the most recent DSMC meeting. Further details will be reported when these data have been unblinded and reviewed by SciClone.
The company expects to conduct a detailed safety and efficacy analysis once the data are unblinded and will then evaluate what effect these data will have on any future RP101 development potential. At the time of this development, SciClone had mentioned that all remaining significant clinical trial expenses for this phase 2 trial will be incurred during 2009 and that this discontinuation will not adversely impact its previously provided financial guidance.
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