TARRYTOWN, N.Y., Sept. 20, 2012 (GLOBE NEWSWIRE) -- Progenics Pharmaceuticals, Inc. (Nasdaq:PGNX) today announced a companywide restructuring, including a reduction of its workforce. The company will continue to focus its resources and efforts on its oncology programs, particularly an upcoming phase 2 study of PSMA ADC in prostate cancer patients.
Progenics provided these additional details:
- Annual cash expenditures will be reduced by an estimated $8 million after restructuring and severance costs. Headcount was reduced by 26% to 77 employees.
- The company is terminating several early stage research projects. Preclinical research will continue in the company's PI3K program.
- Clinical development and manufacturing capabilities are unaffected by the reduction.
- Chief Financial Officer Robert McKinney and Senior Vice President of Quality Benedict Osorio are stepping down, effective September 30. Senior Executive Director and Treasurer Angelo Lovallo will become Principal Financial Officer and Principal Accounting Officer.
- Today 's workforce reduction reflects termination of the early stage research, last year's out-licensing of Relistor ® to Salix Pharmaceuticals, and planned divestitures of the previously discontinued PRO 140 and C. difficile programs.
- These actions follow the U.S. Food and Drug Administration's issuance of a Complete Response Letter related to a Supplemental New Drug Application for use of subcutaneous Relistor in patients with chronic, non-cancer pain. Under the terms of its agreement with partner Salix Pharmaceuticals, Progenics is entitled to a $40 million milestone upon regulatory approval of Relistor for this indication.
"This restructuring reflects our commitment to strategic goals we announced a year ago, when we directed our resources toward addressing the growing need for novel and improved cancer therapies. Our top clinical priority remains advancing PSMA ADC, while continuing to evaluate strategic in-licensing opportunities," said Mark R. Baker, Progenics' chief executive officer. "While I believe this restructuring is the right next step in Progenics' ongoing efforts to benefit patients and shareholders, it is difficult to part with colleagues who have made significant contributions. Senior managers Rob McKinney and Ben Osorio have played key roles in the company over many years. We are grateful to all our employees for their efforts."