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news.Panacos Pharmaceuticals, a development-stage biotechnology company, has announced that it is reducing its workforce from 33 employees to 15, approximately 55% of its workforce, as part of its strategic alternatives to save capital.
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According to the company, these actions are being taken to manage capital resources while Panacos pursues strategic alternatives, including the financing, partnering or sale of the company or one of its several antiviral assets, including bevirimat (PA-457), the company’s first-in-class maturation inhibitor, which is currently in Phase IIb clinical studies in HIV-positive patients.
Under the terms of the recently terminated loan agreement with Hercules Technology Growth Capital, Panacos paid Hercules approximately $17.9 million. As of December 8, 2008, unrestricted cash, cash equivalents and marketable securities totaled approximately $4.7 million. The company is seeking additional sources of capital to continue operations.
Alan Dunton, president and CEO of Panacos, said: Our talented and dedicated development team has worked so diligently on programs that continue to show great promise. However, we are faced with the reality that we must take drastic measures to reflect the current market environment.
These actions are in line with our goal to secure partnerships or sale for our spectrum of HIV programs, including bevirimat, our second- and third-generation maturation inhibitors, as well as the oral fusion inhibitor program.