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news.Cancer drug developer NeoPharm has reduced its workforce by around 23% under a newly implemented cost rationalization program expected to save the company $7 million a year.
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With the completion of enrollment in the pivotal phase III PRECISE clinical trial for the company’s lead drug product candidate, cintredekin besudotox, NeoPharm said that it is now focused on preparing for a possible cintredekin besudotox biologics license application (BLA) submission, completing the cintredekin besudotox manufacturing program, reprioritizing the NeoLipid development program and completing ongoing clinical trials.
The cost savings initiative is expected to reduce expenses by approximately $7 million on an annualized basis, approximately half of which are expected to be realized in 2006.
In line with the program’s aims, the company has reduced its workforce by approximately 23% to eliminate redundant or unnecessary positions, resulting in projected annualized payroll savings of approximately $3 million, approximately half of which are expected to be realized in 2006.
Additional cost savings are expected to be achieved by the reprioritization of the NeoLipid development program to reflect the changing market landscape and regulatory requirements, in addition to the consolidation of all operations into the company’s Waukegan, Illinois headquarters.