Cell Genesys Increases Cancer Product Focus and Eliminates Broad-Based Gene Therapy Research
Tuesday February 4, 7:01 am ET
FOSTER CITY, Calif., Feb. 4 /PRNewswire-FirstCall/ -- Cell Genesys, Inc. (Nasdaq: CEGE - News) today announced its decision to decrease further resource investment in broad-based gene therapy programs in order to increase the focus on the company's clinical programs focused on cancer vaccines and oncolytic virus therapies. In addition to the company's six clinical stage programs, Cell Genesys will continue to invest in its preclinical cancer product pipeline. Cell Genesys will no longer pursue its preclinical in vivo gene therapy programs including hemophilia and other genetic deficiency diseases and will discontinue further investment in gene therapy technology development. Twenty-six positions in Cell Genesys' 330-person workforce will be eliminated by this program management decision. Approximately one third of the affected employees will be transferred to other open positions within the company. Cell Genesys will continue to provide access to relevant gene therapy technologies to its majority-owned subsidiary, Ceregene, Inc., which is focused on gene therapies for neurologic disorders.
"Cell Genesys has always been a company that has made active portfolio management decisions. While we remain in a strong financial position and are able to pursue multiple clinical programs in parallel, we believe it is best for our business and our shareholders to apply our resources to more advanced programs that we feel have the greatest chance for commercial success," stated Joseph J. Vallner, Ph.D., president and chief operating officer. "While it is difficult to say good-bye to employees, we have emerged from this program management decision with an even greater business focus in the development of cancer therapeutic products."
Cell Genesys is focused on the development and commercialization of innovative biological therapies for cancer. The company is pursuing three cancer product platforms -- GVAX® cancer vaccines, oncolytic virus therapies and cancer gene therapies. Clinical trials of GVAX® vaccines are under way in prostate cancer, lung cancer, pancreatic cancer, leukemia and myeloma. Clinical programs of oncolytic virus therapies include CG7870 for prostate cancer. Preclinical studies are in progress for additional GVAX® cancer vaccines, oncolytic virus therapies and cancer gene therapies for multiple types of cancer. Cell Genesys' majority-owned subsidiary, Ceregene, Inc., is focused on gene therapies for neurologic disorders. Cell Genesys also continues to hold approximately 8.7 million shares of common stock in its former subsidiary, Abgenix, Inc., an antibody products company. Cell Genesys is headquartered in Foster City, CA and has manufacturing operations in San Diego, CA, Hayward, CA and Memphis, TN. For additional information, please visit the company's website at www.cellgenesys.com.
Statements made herein about the company and its subsidiaries, other than statements of historical fact, including statements about the application of the company's resources, the company's progress, results and timing of clinical trials and preclinical programs and the nature of product pipelines are forward-looking statements and are subject to a number of uncertainties that could cause actual results to differ materially from the statements made, including risks associated with the success of clinical trials and research and development programs, the regulatory approval process for clinical trials, competitive technologies and products, patents, continuation of corporate partnerships and the need for additional financings. For information about these and other risks which may affect Cell Genesys, please see the company's Annual Report on Form 10-K dated April 1, 2002 as well as Cell Genesys' reports on Form 10-Q and 8-K and other reports filed from time to time with the Securities and Exchange Commission. The company assumes no obligation to update the forward-looking information in this press release.
CONTACT: Jennifer Cook Williams, Associate Director, Corporate Communications of Cell Genesys, Inc., +1-650-425-4542.
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Source: Cell Genesys, Inc. |
