Axys Pharmaceuticals Reallocates Resources to Broaden Research Efforts on Its Oncology Initiative, Partnered Programs and Affiliated Businesses
SOUTH SAN FRANCISCO, Calif.--(BW HealthWire)--Jan. 28, 1999--Axys Pharmaceuticals, Inc. (Nasdaq:AXPH) today announced that, in keeping with its previously stated intent to broaden its research efforts in oncology, the company has reallocated a significant amount of its research efforts to oncology related programs.
As a result, Axys has increased the number of oncology researchers from its current level of 50 to approximately 120. In addition, Axys has eliminated a number of positions that are not currently supporting partnered programs or the company's oncology initiative. The company expects this move will result in savings of approximately $7-8 million on an annualized basis.
John Walker, Axys' chairman and chief executive officer, stated, "During the last few months, the company has made a careful assessment of its strategic direction and the implication of that direction on the company's day-to-day operations. The company's focus going forward is in three areas: (1) Partnered drug discovery programs; (2) Activities in new and ongoing oncology initiatives; and (3) Establishing and building its technology spin out organizations: Advanced Technologies, Xyris and Pharmacogenomics.
"As part of the company's strategic and operational planning, a careful review of the resources and skills required to support this strategy was conducted and, as a result, a difficult decision had to be made regarding eliminating a number of positions that would no longer be required."
This reduction brings the total number of Axys employees to approximately 400. Of that number, 155 will be dedicated to partnered programs and approximately 100 will be involved in Axys' affiliated businesses in agricultural biotechnology (Xyris Corporation) and pharmacogenomics, as well as its Advanced Technologies Division (combinatorial chemistry).
"While it is unfortunate that some layoffs have occurred, we felt this move was necessary to strengthen and broaden our oncology franchise," continued Walker.
"Over the course of the past few years, Axys has built a substantial pipeline of oncology programs which range from gene identification and gene function, to lead identification and preclinical development. Additional researchers working on these programs will help speed the process of moving these potential drugs from the research phase into clinical development.
"Our lead oncology program focuses on inhibiting urokinase -- a serine protease that plays a role in angiogenesis and tumor metastasis. Currently, we anticipate this program will enter clinical development in 1999.
"The overall effort in our oncology initiative is necessary to achieve our goals of four to five oncology programs in clinical development by the end of 2001 and for our research group to achieve its goal of filing one new oncology-related Investigational New Drug (IND) application per year.
"Axys' efforts in our oncology franchise is bolstered by the 20 pharmaceutical partnerships Axys has signed over the years. Many of these partnerships are beginning to produce research milestones and are steadily advancing in preclinical and clinical development. These partnered programs continue to play an instrumental role by providing Axys with research support and the promise that each program holds for the commercialization of novel therapeutics in major chronic disease areas."
Heading up the company's overall efforts in both its partnered programs and its initiative in oncology, Dan Petree, Axys' president and chief operating officer, commented, "Our research efforts are led by a very accomplished group of senior research personnel. Mike Venuti, Ph.D., senior vice president of research and preclinical development and chief technical officer, has been with the company for over five years and has assumed responsibility for all of Axys' research and preclinical development. Bill Moore, vice president, target discovery, has also been with Axys for the past five years and recently moved to Axys' La Jolla operation.
"Working with Bill is Spencer Emtage, Ph.D., vice president, molecular biology, and Alan Buckler, Ph.D., vice president, molecular genetics. Both Spencer and Alan joined Axys via the company's acquisition of Sequana Therapeutics in 1998.
"Carl Johnson, vice president nematode research, also joined Axys via Sequana. Previously, Carl had founded NemaPharm, a research organization dedicated to functional genomics utilizing the recently sequenced C. elegans model system. Ann Welton, vice president, biology, joined Axys in 1997 after 20 years at Hoffman-La Roche. Axys' newest senior researcher, Jochen Knolle, vice president, medicinal chemistry, joined Axys last year after 20 years at Hoechst."
Walker went on to state, "Axys' affiliated businesses in agricultural biotechnology (Xyris Corporation) and pharmacogenomics, as well as our Advanced Technologies division, continue to play a role of increasing importance at the company. Jerry Caulder, former chairman and chief executive officer of Mycogen, has been busy building Xyris and recently added Leo Kim, Ph.D., also formerly of Mycogen, as Xyris' vice president and chief technical officer. We can anticipate much from Jerry and his group in 1999.
"Bob Reed, Ph.D., Axys vice president and general manager of the Advanced Technologies Division, has done an outstanding job of exploiting our expertise in combinatorial chemistry as evidenced by the steady deal flow from that division. We look forward to many more combinatorial chemistry deals with both Big Pharma and biotechnology companies this year.
"Lastly, Jean Warner, Axys' vice president of medical affairs, is heading up our pharmacogenomics efforts. As previously indicated, we intend to establish an entity that will take advantage of this emerging market.
"Together, these people demonstrate Axys' continued dedication to evolving our strong pipeline of partnered and oncology drug programs. Each has played a significant role in building Axys into a drug discovery engine with research capabilities of unparalleled breadth and depth. Their leadership will now help guide Axys as we continue to build on our oncology franchise and expand our clinical pipeline," Walker concluded.
Axys Pharmaceuticals is a leader in the integration of life science technologies with a focus on transforming gene discoveries to drugs. The company has research collaborations with world-class pharmaceutical companies, covering a broad range of therapeutic areas, including respiratory, cardiovascular, metabolic, and infectious disease, as well as oncology and central nervous system disorders.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties which could cause Axys' actual results to differ materially from those discussed here, including Axys' reliance on the efforts of its collaborative partners, the risk that Axys' collaborations will not be successful, risk that clinical trials will not proceed as anticipated or may not be successful, the risk of Axys' early stage of development, the risk that Axys will not be successful in entering into new collaborations, competition, the risk of unexpected difficulties and delays in the development of new technologies and in expanding its manufacturing capabilities, and general economic conditions that may affect Axys' actual results and developments. Additional factors that could cause or contribute to such differences include, but are not limited to, those discussed in the sections entitled "Business" and "Additional Risk Factors" in the company's SEC Reports, including the company's report on Form 10-K for the fiscal year ended Dec. 31, 1997.
Note to Editors: For more information on Axys Pharmaceuticals, Inc., please visit the company's Web site at axyspharm.com.
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CONTACT:
Axys Pharmaceuticals, Inc.
John Walker, 650/829-1000 (Chairman & CEO)
David Gennarelli, 650/829-1000 (Investor Relations)
or
Burns McClellan, Inc.
Justin Jackson or Jason Farber, 212/213-0006 (Media)
Jonathan Nugent, 212/213-0006 (Investors) |
