Nektar Therapeutics has announced plans to restructure, reducing its annual spending by $65 million. As part of this initiative, the company will fire 200 full-time workers, comprising nearly one-quarter of its workforce. In its press announcement, reducing costs and reworking its organizational structure will "allow the company to accelerate the development of its proprietary pipeline, and improve innovation, focus, and accountability across the enterprise." Nektar develops PEGylated and pulmonary technology-based therapeutics.
"During the past several months, we have enacted change at Nektar that prioritizes strong management, timely decision-making, and efficient use of resources," said Howard W. Robin, chief executive officer and president of the company. "These actions greatly strengthen our ability to build a world-class therapeutics company."
Hoyoung Huh M.D., Ph.D. has been promoted to chief operating officer and head of the PEGylation Business Unit. Nevan Elam was promoted earlier to serve as the head of the company's Pulmonary Business Unit. In addition, Michael Simms was named senior vice president of operations, replacing Truc Le, who is leaving the company. Chief financial officer Louis Drapeau is retiring and will leave the company in the coming months.
Overall, the restructuring and layoffs will reduce spending by $65 million. This amount includes reductions of $21 million from general and administrative costs, $23 million from non-cost-of-goods operations, $16 million from R&D, and $5 million from capital spending. Approximately $27 million of this annual spending reduction will be realized in 2007, according to the company.
Nektar reports that it is "making excellent progress" developing its proprietary pipeline. The company plans to complete a Phase IIb trial of NKTR-061 (inhaled amikacin) to treat hospital-acquired gram-negative pneumonia by the end of 2007. Nektar also plans to initiate Phase II trials by the end of the year in its two leading PEGylated small molecule programs, NKTR-102 (PEGylated-irinotecan) for solid tumors and NKTR-118 (PEGylated-naloxol) for opioid-induced constipation.
