Facet Biotech to axe 80 jobs

While the workforce reductions will take place across the organization, the company will maintain core competencies in the research, development and product operations areas in order to support its current pipeline of four clinical stage products, to advance its later stage preclinical assets, and to maximize the opportunities for its proprietary antibody engineering technologies. The company intends to concentrate its R&D efforts on oncology drug candidates.

Separately, the company continues to seek additional opportunities to reduce certain fixed costs, including by subleasing approximately 280,000sqft of excess capacity at its headquarters site. In addition, the company plans to consolidate its operations into one of the two leased buildings at its Redwood City headquarters.

As a result of the cost-cutting measures, the company expects its 2009 cash utilization to be approximately $110 million. This estimate includes the impact of restructuring and other one-time costs but excludes the receipt of potential collaboration milestone payments and costs related to potential in-licensing opportunities.

Faheem Hasnain, president and CEO of Facet Biotech, said: “We are now better positioned to advance our existing pipeline programs in a disciplined manner and explore in-licensing opportunities to augment our pipeline. With this strategic approach, and our more than $400 million initial capitalization and financial projections, we are confident that we can fund our currently planned business operations for approximately four years and advance and enhance our pipeline to demonstrate meaningful value over this period.”