Stressgen lays off staff to help fund HspE-7

By E. Janene Geiss

Philadelphia, Oct. 18 - Stressgen Biotechnologies Corp. announced Tuesday that it has reduced its work force by 33% in an effort to cut operating costs to allow further development of HspE-7, the company's lead compound.

Jobs eliminated include the senior vice president of clinical development and the vice president of regulatory affairs and compliance, company officials said in a news release. A total of 27 permanent staff members will remain, officials said.

While the layoffs are insufficient to fund the company's business plan, company officials said they will explore further options to continue operations, including expansion of corporate partnerships, opportunities for non-dilutive financial contributions and securing more financing.

"We have a number of additional programs underway to allow the company to advance its business plan," Gregory M. McKee, president and chief executive officer, said in the release.

HspE-7 is a therapeutic vaccine designed for the treatment of diseases caused by the human papillomavirus (HPV), one of the most common causes of sexually transmitted diseases in the world. An estimated 80% of sexually active men and women are infected by genital HPV at some point in their lives, the release said.

San Diego-based Stressgen is a biopharmaceutical company focusing on the discovery, development and commercialization of innovative therapeutic vaccines for the treatment of infectious diseases and cancer.

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