SAN FRANCISCO (Thomson Financial) - Kosan Biosciences Inc. said late Tuesday
it will reduce its workforce by roughly 37% in order to focus resources on
supporting advancement of its lead clinical programs, tanespimycin in multiple
myeloma and in metastatic breast cancer, and epothilone KOS-1584 in non-small
lung cancer.
The job cuts will primarily affect the company's research and administrative
functions, Kosan said.
As a result of the restructuring, most research programs will be placed on
hold. Hayward, Calif.-based Kosan said the company may seek to partner these
assets with companies looking for early-stage programs.
The company expects restructuring charges of around $700,000 in the first
quarter.
As a result of the restructuring, Kosan cut its 2008 guidance for cash used
in operating activities to a range of $37 million to $47 million from its
previous forecast of $40 million to $50 million.
The company's shares closed at $1.52.
Gabriel Madway
gm
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