NeoPharm cuts 20% of jobs after cancer drug fails trials
NeoPharm Inc announced a restructuring of its workforce following a late failure of its brain cancer drug earlier this month. The drug, cintredekin besudotox, was slated to be the company’s first commercial product. The restructuring, which will result in 14 employees being dismissed, will save the company about $1.5M over the course of 2007.
The trial data showed that patients receiving cintredekin besudotox had roughly the same survival rate as patients receiving MGI Pharma’s Glidel Wafer treatment, the current industry standard. This resulted in the company suspending future trials, leading to a 73% drop in stock price since.
The company is currently working on liposome-based drugs to treat breast cancer, colorectal cancer, and other advanced tumors.