Genta Incorporated announced that the company has restructured certain of its operations to conserve cash and focus on its oncology development operations.
Last week, the company received notice that its New Drug Application for the use of Genasense in patients with chronic lymphocytic leukaemia was not approved by the Food and Drug Administration.
While Genta is currently reviewing its options for response to this action, the company has reduced its workforce by 34 people, or approximately 35 per cent. Genta has a Marketing Authorization Application (MAA) pending in Europe for its lead anticancer drug, Genasense (oblimersen concentrate solution for injection), in patients with advanced melanoma.
"At the end of the 3rd quarter, Genta had cash and cash equivalents totalling approximately $40 million dollars, and today's actions will result in severance costs of approximately $700,000", said Dr. Raymond P. Warrell, Jr., Genta's chairman and chief executive officer. "Review of the MAA is progressing in Europe, and we currently anticipate a decision by the CHMP for the European Medicines Agency in the first quarter of 2007. The steps we are taking today will conserve cash, while still allowing us to commercialize Genasense in Europe, retaining our options for the US and focusing our capabilities in oncology drug development."
Genasense inhibits production of Bcl-2, a protein made by cancer cells that is thought to block chemotherapy-induced apoptosis (programmed cell death). By reducing the amount of Bcl-2 in cancer cells, Genasense may enhance the effectiveness of current anticancer treatment. Genta is pursuing a broad clinical development programme with Genasense evaluating its potential to treat various forms of cancer.
Genta Incorporated is a biopharmaceutical company with a diversified product portfolio that is focused on delivering innovative products for the treatment of patients with cancer. The company's research platform is anchored by two major programs that centre on oligonucleotides (RNA- and DNA- based medicines) and small molecules. Genasense (oblimersen sodium) Injection is the Company's lead compound from its oligonucleotide programme.