According to the company, employees directly affected by the restructuring plan will receive severance payments, continuation of benefits and outplacement assistance. The company estimates incurring personnel-related restructuring charges of approximately $0.9 million in the first quarter of 2009.
The reorganization will enable the company to continue the development of Telintra and two preclinical drug candidates: a prodrug cytotoxic, TLK58747, and dual Aurora-VEGFR kinase inhibitor, TLK60404.
Michael Wick, chairman and CEO of Telik, said: “This reorganization will allow us to focus our resources on the clinical development of our lead compound, Telintra, currently in Phase II studies for myleodysplastic syndrome and chemotherapy induced neutropenia, as well as other potential indications. We also plan to advance our two leading preclinical drug candidates and continue to support our Trap technology collaborations.”