MediGene announces corporate restructuring and aims to strengthen pipeline
MediGene AG announced a significant restructuring of its business. Given the completion of both the EndoTAG(TM)-1 Phase 2 trial in triple receptor negative breast cancer and the CMC conversion from freeze-drying to spray drying, as well as the recent simplification of its Eligard® arrangements with Astellas, MediGene's management and Supervisory Board have taken the decision to right-size the business. This process will begin immediately and will include significant personnel and cost reductions. These measures will support MediGene's ambition to strengthen its drug pipeline through a strategic transaction.
Within the restructuring process, MediGene's total number of employees will be reduced from 107 to approximately 55, with the majority of the redundancies coming from the teams involved in the successful EndoTAG(TM)-1 CMC conversion process and in running and analyzing the EndoTAG(TM)-1 clinical trials. Both of these have now been completed. MediGene has previously announced that it will take EndoTAG(TM)-1 into Phase III development only in cooperation with a partner who will also bear the costs, and the full data package for the partnering process is now complete and available. Several potential partner companies are in the process of conducting due diligence.
According to the company, MediGene's ability to develop and monetize its portfolio of therapeutic assets will remain unaffected by this restructuring. Core competence teams in pre-clinical development, clinical trial design and clinical development will remain and business development efforts on EndoTAG(TM)-1 and Veregen® will continue.
In addition to these restructuring measures, at the forthcoming Annual General Meeting planned for spring 2011, MediGene's Supervisory Board and management will propose that MediGene's Supervisory Board reduced in order to adjust to the new company size.
The estimated one-off restructuring cost will incur in full in 2010 and is estimated to be approximately EUR 1 million, whereas the cost savings of the measures announced today are anticipated to be at least EUR 5 million per annum.
Organizations
Other news from the department business & finance

Get the life science industry in your inbox
By submitting this form you agree that LUMITOS AG will send you the newsletter(s) selected above by email. Your data will not be passed on to third parties. Your data will be stored and processed in accordance with our data protection regulations. LUMITOS may contact you by email for the purpose of advertising or market and opinion surveys. You can revoke your consent at any time without giving reasons to LUMITOS AG, Ernst-Augustin-Str. 2, 12489 Berlin, Germany or by e-mail at revoke@lumitos.com with effect for the future. In addition, each email contains a link to unsubscribe from the corresponding newsletter.
More news from our other portals
Last viewed contents
NYU Langone Medical Center and School of Medicine - New York City, USA

University of Texas Health Science Center at San Antonio - San Antonio, USA
Immune system reveals new ways to treat brain disease and pain
Vibrations key to efficiency of green fluorescent protein - Charting femtosecond energy flow could aid redesign of molecules to improve light capture

First microarrayed 3D neuronal culture platform developed

AiCuris and Hybridize Therapeutics enter worldwide license agreement of up to €100M for a direct-acting RNA-based therapy against BK Virus

64 human genomes as new reference for global genetic diversity - The new reference data provide an important basis: The aim is to estimate the individual risk of developing certain diseases such as cancer
Psilocybin eases existential anxiety in people with life-threatening cancer
Novartis Phase III study shows once-daily NVA237 is superior to placebo and similar to tiotropium in improving lung function in COPD - GLOW2 study shows NVA237 provides superior 24-hour bronchodilation to placebo (p

Certain iron supplements may influence the development of colon cancer
Forbion Closes Oversubscribed Fourth Life Sciences VC Fund at EUR 360 million - Investment focus is on new drugs and technologies
