Antigenics cuts staff, narrows focus to save cash

New York, Dec. 6 - Antigenics Inc. said it has cut staff and is narrowing its focus in order to reduce its cash burn rate.

"We have elected to take decisive and prudent actions now in order to preserve our cash and position the company to maximize the full value of our diverse portfolio," said Garo H. Armen, chairman and chief executive officer of Antigenics, in a news release.

"We are streamlining our operations and narrowing our focus to those compounds that can generate meaningful and measurable milestones within the next 24 months.

"We believe our updated business strategies give us a realistic and attainable approach for the various contingencies that may arise in the coming period."

Net cash burn will be reduced to $40 million per year by the end of the second quarter, the company said. The figure is cash used in operating activities plus cash from investing activities and debt repayments, excluding program sponsorship from third party sources.

Headcount is now 170 employees, down from 251 at the end of the third quarter. Severance costs are estimated at $2 million.

Antigenics said that the blinded review by an independent panel of three radiologists and an oncologist of its phase 3 trial of Oncophage (vitespen, formerly HSPPC-96) for renal cell carcinoma, the most common form of kidney cancer, is expected to be completed in March. The trial covered 728 patients.

If the data is positive, Antigenics will pursue partnering and/or financing transactions that will enable it to bring Oncophage to market expeditiously and develop its priority programs in clinical and preclinical research, with an aim to rapidly partner these products.

If the kidney cancer trial results are not positive, the company will continue with phase 2 trials of Oncophage in combination therapy. This effort is supported by significant activity demonstrated in preclinical studies of Oncophage combined with chemotherapeutic and biological agents, Antigenics said.

In addition, the company will continue with its other priority preclinical and clinical research programs, financed initially through the company's own cash reserves.

The company also plans to submit to the Food and Drug Administration the results of its tests measuring the potency of Oncophage from both the kidney cancer and melanoma phase 3 trials. These tests have been completed on all patient product samples; the results indicate that 96% of the Oncophage vaccines used in these trials met potency specifications, as measured by two different assays.

Independent of the outcome of the kidney cancer trial, Antigenics is working to bring to the clinic Oncophage made through an improved manufacturing process. Product made with this process has shown significantly higher activity than that made with the current process.

The company's strategy also calls for the continued use of funds for clinical development of Aroplatin in cancer and AG-707 in genital herpes.

Preclinical research will focus on autoimmune diseases with the goal of bringing a lead compound to the clinic in the first half of 2007.

All other clinical and preclinical or research programs have been either postponed or decelerated, Antigenics said.

Antigenics, based in New York, is working to develop patient-specific immunotherapeutics and revolutionary treatments for cancers, infectious diseases and autoimmune disorders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.