Synta Pharmaceuticals cuts 90 jobs

Synta Pharmaceuticals, a biopharmaceutical company, has reduced its workforce by approximately 90 positions, to a total of approximately 130 positions, allowing the company to operate with current cash reserves for approximately two more years without the need for additional equity financing.

According to Synta, workforce reductions have been made across the organization while maintaining strength in core capabilities of discovery and development to support the goals of new partnerships and achieving clinical proof of concept by 2010, without the need for further capital.

Elesclomol is being developed under a joint development and commercialization agreement with GlaxoSmithKline. A total of $130 million in payments have been achieved by Synta under this agreement, and an additional $880 million in potential future milestones are achievable should the program continue. Under the collaboration agreement, GlaxoSmithKline pays the substantial majority of program costs.

Safi Bahcall, president and CEO of Synta, said: This restructuring is unfortunately a necessity in light of the results of our Phase III clinical trial of elesclomol in metastatic melanoma. I would like to express my gratitude for the contributions and commitment of the many outstanding employees who are impacted by the restructuring announced today.

However, we needed to act now to ensure that Synta has the resources, independent of external financial conditions, to continue to advance our most promising pipeline compounds and research programs.