SemBioSys Genetics Inc, a biotechnology company developing a portfolio of therapeutic proteins, announced it has implemented a substantial cost reduction programme to conserve existing cash resources in order to extend its development runway in response to the current challenging capital markets environment. The company will focus its resources on the completion of the near-term development milestones for its insulin and Apo AI programmes, that directly align with the company's partnering strategies for these two products. The company has reduced its headcount to 45 employees. This is a reduction in staff of more than 40 per cent. In addition, the company is curtailing expenditures on those activities that are not critical to the achievement of its partnering objectives.
"Our insulin and Apo AI development programmes are approaching material near-term milestone events, which should enable us to partner these programmes. The changes announced today will ensure our current cash resources and core competencies are focused on achieving these value-driving milestones," said Andrew Baum, president and chief executive officer of SemBioSys. "Separately, our subsidiary, Botaneco Specialty Ingredients Inc., has been financially and operationally independent of SemBioSys since June, consequent to a $4.0 million financing."
SemBioSys has made major progress in both its insulin and Apo AI programmes. It has already completed the manufacture of the clinical grade safflower-produced insulin necessary to conduct its phase-I/II insulin trial, including a cGMP audit required by European authorities. In the US, the 30 day post-IND period was completed in August, with no objections raised by the FDA. The company has also initiated in vivo plaque remodelling and regression studies at Cedars Sinai Hospital at UCLA with its safflower-derived Apo AI Milano. Results from these pivotal pre-clinical studies are expected in early 2009. Both the insulin and Apo AI Milano programmes are currently the subject of substantial discussions with prospective partners.
Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company developing protein-based pharmaceuticals.