GlycoGenesys files for Chapter 11, lays off more than half of workforce

By Ted A. Knutson

Washington, Feb. 3 - GlycoGenesys, Inc. announced Friday it and its subsidiaries have filed voluntary petitions for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Massachusetts.

In addition, the company laid off more than half of its work force and effected senior management changes to allow it time to pursue strategic alternatives, including a sale of the firm. Of the layoffs, the company cut more than 40% of its payroll on Wednesday.

As a part of this effort, the company's board of directors appointed John W. Burns, the company's senior vice president and chief financial officer, to the additional positions of interim chairman of the board of directors and treasurer and Frederick E. Pierce II, the company's vice president of business development, to the additional positions of interim chief executive officer and president.

Bradley J. Carver has stepped down as the chief executive officer, a position he held since June 2000. Carver will continue to provide services to the company as a consultant and remain a member of the board.

"We are concentrating the company's efforts on significantly reducing and containing monthly expenses in Chapter 11, maintaining our multiple myeloma clinical trial, and securing a strategic alliance or other alternative to enable the company to emerge stronger from Chapter 11," Pierce said in a news release.

GlycoGenesys is a Boston-based biotechnology company focused on carbohydrate drug development.

The Chapter 11 case number is 06-10214.

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