Renovo cuts jobs after takeover talks fail
pharmafile | September 18, 2009 | News story | Research and Development |Â Â RenovoÂ
UK biotech Renovo is planning to reduce its headcount by over a third after a takeover approach from an unnamed bidder fell through.
The anti-scarring treatment specialist will scale down its operations after talks were unsuccessful, and instead focus on getting its key drugs Juvista, Adaprev and Prevascar to market.
The company's woes are symbolic of a wider trend in the biotech sector, which is suffering from a lack of available funds and has been left fighting for survival in the recession.
Mark Ferguson, chief executive of Renovo, said the plans to restructure resulted from a comprehensive and thorough analysis of all its current and potential programmes.
He added: "Although painful, these measures will maximise our financial flexibility as we focus on Juvista gaining approval in Europe and on other future growth opportunities. I would like to thank all the Renovo staff for their outstanding contributions to the company and the non executive directors for their sound guidance and advice."
Scar-reducing candidate Juvista is being developed in partnership with Britain's Shire, but back in April the specialty company denied it could potentially take over the smaller firm.
The board has now confirmed it is no longer in discussions with any party regarding a potential takeover, and its resultant restructuring will focus on supporting clinical development programmes, together with managing and partnering Renovo's products and IP assets.
The company said it could lead to a reduction in headcount at the organisation, currently around 160, by just over a third.
The executive directors have voluntarily agreed to accept no pay rise this year and to defer any 2009 cash bonus awarded under the current plan until reporting the first phase III trial for lead drug Juvista – which is on track for 2011.
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