Biotech Firms Regroup, Cut Jobs

Three biotech firms announced restructuring plans and staff cuts last week. QLT, which specializes in eye disease therapy, announced a plan to halt other drug development programs that could amount to a 46% reduction of its staff of 474. Half the jobs will be eliminated in January; the rest may be cut through subsequent divestitures, according to Acting CEO Robert Butchofsky. He cites increased competition for Visudyne, QLT's injectable drug to treat age-related macular degeneration (AMD). The AMD drug market heated up this year when Genentech announced favorable studies for Lucentis and OSI Pharmaceuticals acquired Eyetech Pharmaceuticals, which markets Macugen. Meanwhile, drug discovery firm Antigenics, anticipating analysis of data from a Phase III kidney cancer trial for its lead drug, Oncophage, says it will cut its staff of 251 by 32% to "reduce burn rate" and focus on its highest-potential products. And discovery and informatics firm Compugen is reorganizing into three units, therapeutics, diagnostic biomarkers, and research and discovery, to focus on its short- and mid-term development goals. The company is cutting staff by 25%, or about 30 jobs.