SciClone Pharmaceuticals Inc. announced this morning that it will be cutting back on at least 17 percent of its workforce or about 7 jobs as a part of management restructuring and ongoing downturn in business.
SciClone Pharmaceuticals is a profit-driven worldwide biopharmaceutical corporation with a flourishing international business and a drug portfolio of innovative treatments for various cancer and infectious disorders. For most of the past decade SciClone has had double digit return growth because of its increasing drug portfolio. Sales in countries like China and Russia have helped sustain SciClone international development program.
In a press release on its website, says Dr Friedhelm Blobel PhD, president and CEO of SciClone, “”Throughout the year SciClone has been strongly focused on containing costs and closely managing expenses. The decision to reduce our workforce in the wake of the RP101 trial discontinuation was inevitable yet difficult, considering the high degree of talent and dedication of our employees. We are committed to moving SciClone towards sustainable profitability. With streamlined operations, decreased expenditures, and expected robust global sales, we believe we are fully on track to realize that objective.”
The latest news about re-structuring comes after the company had to halt a drug trial for treatment of late stage pancreatic cancer. Pancreatic cancer is invariably fatal if it is not diagnosed early and treated promptly. The majority of people with pancreatic cancer die with 9-18 months and surgery has not had a big impact. SciClone claims that the drug monitoring safety committee suggested that the trial of the experimental drug RP 101 be halted. Anytime a drug trial is halted there are significant losses and expenses accrued. The company claims that this move will result in a loss of close to $300,000 which includes severance pay and other related expenses. SciClone expects to complete its restructuring by the end of the present quarter.
Successful SciClone products on the market include Zadazin (thymalfasin/thymosin alpha1) to treat hepatitis B, malignant melanoma and as an enhancer for novel HIN1 flu vaccines. Other products include commercialization of DC Bead to treat nausea and vomiting after radiotherapy, chemotherapy and surgery.
According to its website and annual report, SciClone had 227 employees last year and about 40 of these worked out of the laboratories in San Francisco. A 17 percent cut in the US job force means that 7 people will be let go. The professional status of people being let go has not been announced. So far no job cuts have been considered for international employees said company spokes person. SciClone shares dropped 15 cents to $2.37 in afternoon trading.