Abgenix 15 %
Abgenix to Layoff 15 Percent of Workers
Tuesday June 28, 1:57 pm ET
Abgenix to Consolidate Research Operations, Cut 15 Percent of Workforce
FREMONT, Calif. (AP) -- Abgenix Inc. said Tuesday it is consolidating its research and pre-clinical activities into the company's Canadian facility in Burnaby, British Columbia, which will result in the layoff of 15 percent of its workforce.
Abgenix intends to sublease the resulting excess research space near its Fremont headquarters, while retaining its pilot, clinical and commercial-scale manufacturing capabilities, also located in Fremont.
The company said this move is designed to focus resources on its development pipeline -- particularly the potential commercial opportunity of its lead product candidate, panitumumab. Abgenix genetically engineers mice to develop antibody therapies for diseases such as autoimmune disorders, cancer and transplant-related conditions.
Panitumumab, which was developed with partner Amgen, is being evaluated both alone and in combination with other drugs as a treatment for various types of cancer, including colorectal, lung and kidney.
Abgenix said it expects to incur restructuring charges of about $13 million to $16 million, most of which will be recorded in the second quarter of 2005. The charges include about $11 million to $13 million related to lease obligations and leasehold improvements, and about $2 million to $3 million for severance, relocation and other termination benefits. |
