Sector News

Synta cuts another 20% of staff and rallies around its cancer drug

February 9, 2015
Life sciences
Synta Pharmaceuticals is again slashing its payroll, cutting costs across the board as it presses ahead with ganetespib, a long-delayed cancer treatment.
 
The layoffs will trim Synta’s existing staff from 113 to 90, the company said, following last year’s roughly 15% headcount reduction. The cuts, coupled with a planned consolidation of Synta’s office and lab facilities, will conserve cash and help the biotech focus on its advancing its pipeline, the company said.
 
Leading the way is ganetespib, a small-molecule drug that blocks heat shock protein 90, which is instrumental in tumor growth. The drug is now in the midst of a Synta-sponsored Phase III trial in non-small cell lung cancer with final data expected next year. If ganetespib comes through, the company plans to submit it for FDA approval thereafter.
 
And beyond its top prospect, Synta is at work on the preclinical STA-12-8666, expecting to file an IND in the first quarter of 2016. The biotech’s cost-savings plan will also set aside some money to bring another of its anti-cancer candidates into preclinical development by the end of this year, Synta said.
 
“The next several quarters hold tremendous potential for bearing out the value of our pipeline,” Synta CEO Anne Whitaker said in a statement. “The structural changes we are making within our organization, while difficult decisions, are necessary to help us realize this potential. We are extremely grateful for the contributions of those who will be leaving the company, and we all wish them much success in their future endeavors.”
 
Whitaker took the reins at Synta last year, resigning from her post as head of Sanofi’s ($SNY) U.S. pharma operation to lead a turnaround at the biotech.
 
By Damian Garde
 

comments closed

Related News

October 23, 2021

Novo Nordisk teams with CVS Health on obesity support program ahead of Wegovy DTC launch

Life sciences

As Novo Nordisk gears up to disrupt the obesity market with its newly approved weight-loss drug Wegovy, it is teaming with retail pharmacy giant CVS Health on a new education and nutrition coaching program for people taking anti-obesity meds.

October 23, 2021

GSK-backed Atreca inks license with Gates Medical Research Institute for malaria monoclonal antibody

Life sciences

The terms of the deal were undisclosed, but Atreca received $6 million from the Gates Foundation in 2012 to discover potential treatments for malaria, tuberculosis and HIV. The foundation has also given grant money to other biopharmas exploring malaria treatments, including Exscientia, which secured $4.2 million last year for such work.

October 23, 2021

A record number of biotechs are going public. Here’s how they’re performing.

Life sciences

At the start of the last decade, the IPO markets weren’t receptive to biotech companies. But by 2013, public investment was pouring into the industry, drawn by scientific advances and boosted by the newfound interest of a broader range of investors. Ever since, biotechs and their backers have ridden a multi-year boom. Keep track of them as they happen with this database.

Send this to a friend