Xenova cuts 40 jobs to help conserve cash
(no % given in the original PR) -
LONDON, Dec 11 (Reuters) - British biotechnology firm Xenova Group Plc said on Wednesday it was axing 40 jobs as part of a plan to save around 2 million pounds ($3.2 million) a year and extend the life of its current cash pile.
Chief Executive David Oxlade told Reuters the cuts would not affect the development of the firm's products, as the positions would mostly be replaced by out-sourcing.
Analysts welcomed the move, saying it would buy Xenova a little more time before it would need to return to equity markets, which have been reluctant to provide funding recently.
At 1335 GMT, the firm's shares were 4.8 percent higher at 32-1/2 pence, valuing the business at around 47 million pounds ($73.9 million).
Xenova raised 9.9 million pounds from shareholders in September to provide near-term funding, but said it would probably have to return to equity markets before its lead product, cancer drug Tariquidar, is launched in around 2006.
Larissa Thomas, an industry analyst at Canaccord Capital, said the firm could last on existing reserves for another three months, to the second quarter of 2004.
Nomura analyst Sam Fazeli also praised the move, and trimmed his forecast loss for the current financial year to 13.9 million pounds from 14.7 million.
Both analysts have a "buy" rating on Xenova shares.
The company, which is developing vaccines against nicotine and cocaine addiction as well as other cancer treatments, also said it had started pre-clinical research on a new treatment for cancer and a vaccine for Meningitis B.
(additional reporting by Ben Hirschler) |
