Celltech Group plc -- Closure of Seattle Research Facility
SLOUGH, U.K., Nov. 19, 2003 (PRIMEZONE) -- Celltech Group plc (London:CCH.L - News) (NYSE:CLL - News) announced today a reorganisation of its R&D operations designed to rebalance resources between its research and development activities. It will close its novel target discovery facility in Seattle, US at the beginning of 2004, with certain key activities being transferred to other sites. The annualised savings deriving from this closure of approximately GBP11.5 million will be reinvested in R&D, with particular focus on accelerating Celltech's early stage development pipeline, including novel anti-inflammatory treatments CDP 484, CDP 323 and CDP 146.
As a result of the closure of the Seattle site, Celltech will cease in-house target discovery activities and will focus on in-licensing of targets from academia and other companies. In this regard, Celltech acquired six novel oncology targets following its acquisition of Oxford GlycoSciences during 2003. Support for the Amgen osteoporosis collaboration and ongoing validation of novel targets discovered at Seattle will be transferred to Celltech's Slough research centre. Bioinformatics activities currently based in Seattle will be transferred to Celltech's Slough and Rochester facilities.
Dr Goran Ando, Chief Executive Officer of Celltech, commented: ``Whilst the quality of scientific research at the Seattle site has been exceptional, it has proven challenging to generate a sustained flow of novel targets from a relatively small group. In light of this, Celltech has concluded it is a more efficient use of its resources to pursue external collaborations to access new targets. This will enable us to maximise the impact of our R&D budget by redeploying financial resources to accelerate development of our promising early stage pipeline.''
The closure will result in an exceptional charge of approximately GBP5.5 million in the second half financials, relating primarily to redundancy and property costs. As a result of the redeployment of resources, the closure is not anticipated to have any impact on Celltech's continuing earnings. The Seattle site currently employs 90 people, a small number of whom will transfer to other sites.
Dr Ando commented further: ``Our early stage pipeline is looking very exciting. We will have entered four products into clinical development during 2003. We believe by focusing resource on later stage research and early development we will maximise the future returns for shareholders.''
Celltech Group plc (LSE: CCH; NYSE: CLL) is one of Europe's largest biotechnology companies, with an innovative development pipeline, funded by its profitable, cash-generative pharmaceutical business. Celltech also possesses drug discovery capabilities of exceptional strength, including a leading position in antibody engineering. More details can be found at celltechgroup.com.
Notes for editors
The Seattle research site originated as Darwin Molecular, Inc., which was acquired by Chiroscience PLC in 1996. Celltech merged with Chiroscience PLC in 1999 to form Celltech Chiroscience plc, and acquired Medeva PLC in 2000 to form the current Celltech Group... |
