Exelexis slashes workforce by 70%


US biotech firm Exelexis is cutting around 160 jobs (70% of its workforce). The move follows poor results from a clinical trial of its cancer drug Cometriq (cabozantinib) in men with metastatic castration-resistant prostate cancer (mCRPC).

The job cuts will leave behind just 70 employees, but the firm anticipates that the cost savings will leave it with ‘sufficient cash to support its operations through to the release of top-line results of [a trial of Cometriq in metastatic renal cell carcinoma] next year’.

A glance at Exelexis’ financial results reveals why such drastic cuts are needed. Cometriq is already approved in the US to treat metastatic medullary thyroid cancer, and brought in $6.5 million (£4 million) in revenue in the second quarter of 2014. However, the firm has made overall operating losses of over $55 million in each quarter of the last year, including spending $47–51 million on R&D. With only $87 million in working capital on its balance sheet, cutting staff and any peripheral clinical trial programmes allows the company to continue its most promising trials in the hope of positive results.


Related Content

Takeda slashes 10% of its workforce

20 January 2012 News Archive

news image

Japanese pharmaceutical firm sheds 2800 jobs in the US and Europe after recent takeover of Nycomed

Business roundup

23 February 2009 Business

news image

Industry news, March 2009

Most Read

Magnetic resonance taken to the limit

21 November 2014 Research

news image

Technique can read the spin of a single nucleus opening up a new way to investigate proteins and complex molecules

Boron and beryllium finally shake hands

24 November 2014 Research

news image

Never-before-seen bond observed between periodic table neighbours

Most Commented

A year of water splitting from one device

21 November 2014 Research

news image

Coating protects electrodes from corrosion to keep photoelectrochemical cell running

Nanostripe controversy in new twist

24 November 2014 Research

news image

Creator of striped nanoparticles insists questions over structures have already been answered and accuses critics of a 'perso...