Kosan Restructures Workforce to Focus Resources on Lead Clinical Programs
Mar 18, 2008 18:45:00 (ET)
HAYWARD, Calif., March 18, 2008 /PRNewswire-FirstCall via COMTEX/ -- Kosan Biosciences Incorporated (KOSN, Trade ) today announced that the company will reduce its workforce by approximately 37% in order to focus resources on supporting advancement of its lead clinical programs, tanespimycin in multiple myeloma and in metastatic breast cancer, and epothilone KOS-1584 in non-small lung cancer. The restructuring will primarily affect the company's research and administrative functions. As a result of the restructuring, most research programs will be placed on hold. The company may seek to partner these assets with companies looking for early-stage programs.
"Restructuring our workforce to focus resources on development of our lead clinical programs completes the strategic reprioritization of Kosan's development portfolio that we recently announced. This represents an important step in Kosan's evolution to a product-oriented company," said Helen S. Kim, Kosan's Chief Executive Officer. "We appreciate the efforts of all our employees as their contributions have helped to build our company's reputation as a leader in polyketide technology as well as Hsp90 and epothilone drug discovery. We believe that this restructuring will strengthen our ability to effectively manage our resources, execute on our development goals and advance our high-value, near-term commercial opportunities."
Kosan anticipates incurring restructuring charges of approximately $0.7 million in the first quarter of 2008, primarily associated with personnel-related termination costs. As a result of the restructuring, Kosan is reducing its 2008 guidance for cash used in operating activities by $3.0 million, from $40-$50 million to $37-$47 million.
About Kosan
Kosan Biosciences is a biotechnology company advancing two new classes of anticancer agents through clinical development -- a Hsp90 (heat shock protein 90) inhibitor and an epothilone. Hsp90 inhibitors have a novel mechanism of action targeting multiple pathways involved in cancer cell growth and survival. Tanespimycin (KOS-953) is being tested in combination with Velcade(R) (bortezomib) in patients with multiple myeloma in a clinical program called TIME. Tanespimycin is also being studied in HER2-positive metastatic breast cancer in combination with Herceptin(R) (trastuzumab). Epothilones inhibit cell division with a mechanism of action similar to taxanes, one of the most successful classes of anti-tumor agents. KOS-1584 is in Phase trials in solid tumors. Kosan's motilin agonist compound, KOS-2187, licensed to Pfizer, is in a Phase 1 trial in gastroesophageal reflux disease (GERD). For additional information on Kosan Biosciences, please visit the company's website at kosan.com .
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