Transkaryotic to lay off 80
Decision boosts battered shares; staff down to 346
By Jeffrey Krasner, Globe Staff, 3/20/2003
Shares of Transkaryotic Therapies Inc. of Cambridge gained 3.3 percent yesterday after the
company announced it was laying off 80 employees to cut costs.
The move is part of an effort to focus on near-term drug development after a series of legal and
regulatory setbacks delayed possible regulatory approval of TKT's drug Replagal and caused
shares to lose 85 percent of their value.
''This painful action reflects our need to enhance fiscal discipline,'' said Michael Astrue, TKT's chief
executive, in a statement. ''After a careful analysis and review of our core business, we believe we
have aligned our resources with our refocused strategy. This period of retrenchment has been
emotional for us because we are losing talented, dedicated employees who have done a great deal
for TKT.''
Between the layoff and attrition, TKT's work force will shrink about 22 percent to 346 employees.
The firm's stock gained 18 cents to close at $5.55.
TKT's stock has been battered since it disclosed in October that clinical data didn't support
Replagal's approval by the US Food and Drug Administration for Fabry disease. That disclosure
was confirmed in January when an FDA advisory panel voted unanimously not to recommend
approval of Replagal. Genzyme's treatment for Fabry disease received approval.
Meantime, a patent dispute has prevented TKT from selling Replagal in Europe, where it has been
approved.
Astrue, TKT's former general counsel, quit the firm last December and was rehired as CEO in
February. He said at the time that staff cuts would be necessary.
Near-term, TKT is intent on resubmitting Replagal for regulatory approval. The company also said
it will focus its near-term efforts on developing protein replacement therapies. Other research
programs involving gene therapy will be developed with larger corporate partners, Astrue said
recently.
Jeffrey Krasner can be reached at krasner@globe.com.
This story ran on page C4 of the Boston Globe on 3/20/2003. |
