Cerus Corporation announced that the company is realigning its operations to focus more intensively on its programme to develop therapeutic vaccines against cancer and infectious disease.
As a result of the realignment, the company will reduce its current workforce by approximately 35 per cent and cash use for operations going forward to an annual rate of approximately $12-15 million from the previously projected $30-35 million. There will be a one-time restructuring expense of approximately $3 million in the second quarter.
The company's vaccine programme, initiated two and a half years ago, is based on proprietary technology that, in combination with specific cancer antigens, has demonstrated the potential to induce potent immune responses against malignant cells. In addition, the company is applying its technology to develop safer and more effective vaccines against infectious disease.
"We are excited about the potential for the innovative vaccine programme to provide a more effective therapy for a broad range of cancers. We plan to file at least one IND with the FDA by the end of 2005," said Claes Glassell, president and chief executive officer, Cerus Corporation. "At the same time, we continue to believe in the value of a proactive approach to blood safety and plan to maintain a measured investment in Intercept while the market develops," he said.
In the vaccine programme, Cerus has entered into a strategic collaboration with MedImmune to develop a therapeutic vaccine targeting an antigen expressed in breast, prostate and colon cancers. The company has also licensed an antigen from The Johns Hopkins University that is prevalently expressed in pancreatic and ovarian tumours. The company intends to continue to partner with companies having proprietary antigen targets and to pursue its own products.
The Intercept Blood System is designed to enhance the safety of the world's blood supply by inactivating viruses, bacteria, other pathogens and white blood cells in blood components intended for transfusion. The company plans to continue technical support of Baxter's commercial efforts for Intercept Platelets in Europe. The company also intends to work with the U.S. Food and Drug Administration on advancing the regulatory approval process. Cerus expects to continue its development activities in the Intercept Plasma program at a reduced rate, allowing the company to meet financial objectives while fulfilling critical program activities. Selected research and development activities will continue with its red blood cell program. In addition, the company plans to work with Baxter to pursue commercial opportunities for the Intercept Blood System in geographical areas outside of North America and Europe.