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ImmunoGen to axe 220 positions as part of new restructuring strategy

pharmafile | June 28, 2019 | News story | Manufacturing and Production, Medical Communications Immunogen, pharma 

ImmunoGen has announced that, following an in-depth operational review to “extend the company’s cash runway”, it will be implemented a range of changes to the business which will see the loss of 220 of the company’s staff.

The company has made it known that its new direction will “prioritise continued development of mirvetuximab and a select portfolio of three earlier-stage product candidates targeting solid tumours and haematological malignancies.”

As part of the plan, the company will:

  • Discontinue development of its product IMGN779 in the treatment of relapsed/refractory CD33-positive acute myeloid leukaemia in adult patients
  • Suspend all other research activities
  • Sub-lease its excess office and lab space

Regarding the layoff of employees, the company did not say where these cuts would hit, but it did confirm that these employees will leave the business by mid-July this year. It also noted that this workforce reduction would cost around $16.4 million to execute, accounting for termination benefits and other expenses.

However, the company estimated that, through these restructuring efforts, it would generate over 50% reductions in its quarterly expenses.

“I thank the employees separating from the business for their significant contributions to ImmunoGen and to the advancement of the antibody-drug conjugates (ADC) field,” commented Mark Enyedy, ImmunoGen’s President and Chief Executive Officer. “Reorganising the business is critical to the Company’s future, enabling us to extend our cash position and continue the development of mirvetuximab and our portfolio of promising ADCs in earlier stages of development. We look forward to continued progress with the business, including the start of the registration study for mirvetuximab by year-end and additional monotherapy and combination data at ESMO in September, identifying a recommended Phase 2 dose and initiating combination studies with IMGN632 in the second half of the year, and filing an IND for IMGC936 by the end of 2019.”

Steve McCluski, ImmunoGen’s Chairman of the Board, added: “This was an extremely difficult decision for the Board, as we believe deeply in the therapeutic promise of ADCs, the Company’s science, and its people. These are, however, the right steps to take to bring mirvetuximab to patients and offer the best opportunity to capture long-term value for our shareholders, whom we thank for their support.”

Matt Fellows

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