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AVEO Oncology (NASDAQ: AVEO) today announced a strategic restructuring designed to optimize resources and reduce expenses to ensure AVEO is well positioned for a successful launch of tivozanib in renal cell carcinoma (RCC) and continued development in other cancer types, while maintaining a focused research engine. In addition, AVEO reported consolidated financial results for the third quarter of 2012, updated its financial guidance and summarized recent developments.
“AVEO’s primary focus is on the approval and successful commercialization of tivozanib, which will drive the near term future of the company and will be our greatest opportunity for value creation,” said Tuan Ha-Ngoc, president and chief executive officer of AVEO. “AVEO’s drug discovery, translational research and Human Response Platform capabilities remain long-term core value drivers. We believe the cost savings resulting from the reduction in the scope of the R&D activities and associated resources outside of tivozanib position us well to successfully execute the planned launch of tivozanib, as well as make progress toward our goal of becoming a fully integrated oncology company.”
The company plans to explore further development of ficlatuzumab and certain discovery assets through external collaborations, including with academic partnerships and cooperative groups. The company plans to focus its Human Response Platform™ and discovery capabilities on supporting the clinical development of tivozanib, advancing biomarker identification and development across AVEO’s clinical stage programs, and developing novel, high potential programs.
AVEO’s strategic restructuring and projected cost savings are being achieved through a combination of reduced spending on early stage research programs and a reduction in force of approximately 45 positions, or 17% of AVEO’s workforce, as well as elimination of 30 open positions. This refocusing of resources and reduction of expenses is expected to provide AVEO approximately $100 million in cost savings over the next three years compared with prior projections, with approximately $37 million in 2013, and is expected to extend its cash runway through 2013.