Cell Genesys restructures
CEGE is restructuring and reducing its headcount by 25%, to 285 from 380. The company will discontinue its GVAX vaccines to treat lung cancer and myeloma and CG7870 to treat metastatic hormone-refractory prostate cancer (HRPC). CEGE plans to sell its San Diego manufacturing facility for viral products and discontinue manufacturing activities at its Memphis facility. CEGE hopes to cut its burn rate by about 15%. Last year, CEGE had an operating loss of $98.6 million. At the end of the first quarter, the company had $145 million in cash.
CEGE will focus on its GVAX vaccine to treat prostate cancer, which is in Phase III trials, and its GVAX vaccines to treat leukemia and pancreatic cancer, which are in Phase II trials. Last month, CEGE received an SPA from FDA for a second Phase III trial of GVAX cancer vaccine to treat hormone-refractory metastatic prostate cancer (see BioCentury Extra, Wednesday May 18, 2005). ...