Anadys Cuts Jobs, Program In Restructuring Move

SAN DIEGO (AP) — Anadys Pharmaceuticals Inc. said Thursday it is cutting its work force by 40 percent, along with a drug development program, to focus resources on its lead hepatitis C drug candidate.

The restructuring move effects about 20 workers, while the early-stage hepatitis C drug program for ANA773 will end. The focus will now be on ANA598, which is heading into midstage development for hepatitis C.

The move comes as Anadys and other development stage biotechnology companies struggle with funding. Anadys had just $4.7 million in cash and cash equivalents as of March 31, though that figure rises to $20.8 million when marketable securities are included, the company has said.

Anadys said that figure would be sufficient to fund the company for 12 months, according to a Securities and Exchange Commission filing in April, but it would need additional funding to further develop its hepatitis C drug program. It now plans on raising about $16.2 million through a stock and warrants offering to institutional investors.

ANA598 was given special "fast-track" review status by the Food and Drug Administration in 2008, allowing the company to submit its application in piecemeal fashion instead of all at once. Hepatitis C is a blood-borne infection causing liver inflammation and can eventually lead to liver failure or liver cancer. It affects about 3.2 million people in the U.S. and 170 million people worldwide.