Vical blames credit crunch for job cuts
This article was originally published in Scrip
Vical, a US-based biopharmaceutical company, is to cut its staff by 20%, leaving around 120 employees working for the company. It expects the cost-reduction initiative, which also involves the accelerated closure of a research facility, to reduce future net losses and cash burn by around $4 million annually. In the current economic climate, Vectura needs to reduce spending and focus its efforts on advancing its two late-stage product development programmes, Vijay Samant, the company's president and CEO, said. Allovectin-7, an immunotherapeutic, is currently in a Phase III trial in patients with advanced, metastatic melanoma and a DNA vaccine for cytomegalovirus is currently in Phase II trials in stem cell transplant recipients. Vectura expects to incur restructuring charges of around $800,000 in the fourth quarter of this year and an additional $500,000 in the first quarter of next year related to the facility's closure.