Corixa Announces Restructuring of Its South San Francisco Operations
Company to Focus Resources on Core Immunotherapeutic Development Efforts and Related Operations
SEATTLE--(BW HealthWire)--May 23, 2002-- Corixa Corp. (Nasdaq:CRXA - News), a developer of immunotherapeutics, today announced the restructuring of its South San Francisco operations.
As a result of the restructuring, Corixa also announced:
* The purchase of specific preclinical assets by Medarex, and associated transfer of approximately 30 Corixa employees to Medarex to support those programs (announced in a separate press release today)
* An approximate 60 percent immediate reduction in Corixa's South San Francisco workforce, including the elimination of unfilled open positions, as well as select existing positions and those transferred to Medarex. Certain additional South San Francisco employees will be retained for a short transition period, and additional South San Francisco employees will be offered positions at other Corixa locations.
These business decisions support Corixa's goal of focusing staff and financial resources on core immunotherapeutic development efforts and related operations.
The workforce reductions announced today will result in a second quarter charge of up to $2.5 million. In addition, Corixa expects to incur additional charges related to its leased facilities as it enters into potential sublease arrangements. The workforce reduction and asset sale and related employee transfer are expected to result in annual cost savings of more than $30 million. Following the reductions announced today, Corixa will have approximately 375 employees at facilities in Seattle, South San Francisco and Hamilton, Montana.
"The actions taken today will help us focus on programs that we consider key to our success, including cancer and infectious disease vaccines, selected antibodies, our growing adjuvant business, AGPs as monotherapies and rational treatments for autoimmune disease," stated Steven Gillis, Ph.D. chairman and chief executive officer. "Further concentration of our efforts in these areas will strengthen our balance sheet and allow us to pursue priority programs more aggressively and efficiently."
Gillis added, "We will consolidate bench research and development operations at our Seattle facility. Our Montana location will continue to function as a manufacturing site for our adjuvant and AGP product lines, as well as selected fermentation-derived vaccines. The clinical and regulatory affairs teams in South San Francisco, both of which have been largely re-structured following the Coulter acquisition, will remain intact. The South San Francisco operation will also house key individuals responsible for various aspects of BEXXAR® manufacturing and logistics. While some staff at other locations will be asked to take over certain responsibilities associated with process development functions previously conducted in South San Francisco, a few additional employees may be added in the future to assist with these activities. Finally, the sales and marketing positions eliminated as a result of today's restructuring may be re-instated in the future, if developments merit."
The company is currently evaluating use of more cost effective facilities to accommodate the remaining employees in South San Francisco and is involved in active discussions regarding additional sublease agreements for Corixa's remaining facilities located at 600 and 630 Gateway Blvd. As a part of the agreement with Medarex, Medarex has agreed to sublease approximately 30,000 square feet of laboratory and office space at Corixa's South San Francisco 650 Gateway Blvd. facility subject to customary conditions.
Conference Call
Corixa will hold a conference call on May 24, 2002 at 8:30 a.m. EST to discuss today's announcements. To participate in the conference call, participants should dial 800-289-0496 (international dial 913-981-5519). A replay of the conference call will be available from 11:30 a.m. EST May 24th through midnight May 28th. To access the replay, please dial 888-203-1112 (international dial 719-457-0820), and enter passcode 366160. Or you can visit the investor |
