Theravance 1Q loss narrows, plans 40 percent job cut
Monday April 21, 5:13 pm ET
Theravance 1st-quarter loss narrows sharply; job cuts planned as antibiotic program finishes
SOUTH SAN FRANCISCO, Calif. (AP) -- Biotechnology company Theravance Inc. said Monday it will cut 40 percent of its workforce now that development of its antibiotic telavancin is complete.
The announcement comes as the company's first-quarter loss narrowed sharply on a drop in expenses because of the completed program. Theravance lost $29.8 million, or 49 cents per share, compared with a loss of $49.5 million, or 82 cents per share, in the year-ago period. Revenue rose 5 percent to $5.6 million from $5.4 million.
Analysts polled by Thomson Financial, on average, estimated a loss of 48 cents on revenue of $6.5 million.
"Now that our Phase 3 development activities with telavancin are complete, we are focused on submitting the hospital-acquired pneumonia new drug application later this year and on continuing to work with the FDA to complete its review of the complicated skin and skin structure infections application," Chief Executive Rick E. Winningham said in a note to investors.
The company said it will also make workforce changes to support development of its gastrointestinal drug candidate TD-5108.
Revenue increases during the first quarter came from the company's partnership with Astellas Pharma Inc., the company said.
Meanwhile operating expenses fell to $35.9 million from $57.7 million. |
