Friday, December 19, 2008

Targanta cuts 75 percent of workforce

By Marc Songini

Troubled biotech Targanta Therapeutics Corp. plans to cut 86 employees, or 75 percent of its staff, this month, the company announced.

Cambridge-based Targanta (Nasdaq: TARG) said it’s making the move to preserve its cash while it continues to seek regulatory approval for its antibiotic drug, oritavancin. To that end, the company will retain 27 employees whose key task will be to get the European Union to clear the drug. 

Earlier this month, the U.S. Food and Drug Administration (FDA) had declined to approve oritavancin, a drug designed to treat complicated skin and skin structure infections (cSSSI). The FDA instructed Targanta to conduct an additional clinical study to demonstrate the drug’s efficacy and safety. So, while the firm works for European Union approval, it will also try to clear the FDA’s hurdles and develop the protocol for a Phase 3 study of oritavancin. In effect, since receiving the FDA’s response to its drug application, Targanta has reverted from a company preparing for the commercial launch of a drug to a late-stage clinical development firm, said Mark Leuchtenberger, the company president and CEO, in a statement.

In particular, in its response letter, the FDA told Targanta to enroll more test patients with cSSSI caused by methicillin-resistant Staphylococcus aureus (MRSA). The FDA noted that oritavancin didn’t seem to perform well in MRSA patients.

In November, Targanta reported a net loss of $12.7 million for its third quarter. In 2007, it saw a net loss of $63.4 million on zero revenue.