February 3, 2015
By Mark Terry, BioSpace.com Breaking News Staff
The current layoffs will also include the company’s chief medical officer, Nestor Molfino. Molfino’s termination will be effective today.
South San Francisco, Calif.-based KaloBios Pharmaceuticals, Inc. confirmed today that the company will lay off more than 20 percent of the company’s personnel as part of a restructuring plan.
On Jan. 6, 2015, the company announced disappointing data from its Phase II study of KB001-A, an anti-PcrV monoclonal antibody (mAb) fragment to treat Pseudomonas aeruginosa lung infections in patients with cystic fibrosis. Although the data did show the compound was generally safe, the primary endpoint, extending the time before antibiotics were needed, was not met.
“Going forward, KaloBios will focus resources and efforts on advancing our oncology programs,” said David Pritchard, president and chief executive of KaloBios, in a statement. “Specifically, we are working to advance our KB004 oncology program as well as to expand the oncology development portfolio with the possible introduction of additional oncology indications for KB004 or for KB003, our anti-GM-CSF antibody.”
On Jan. 8, 2015, the company announced that David Pritchard would retire, effective immediately. He also resigned as a member of the Board of Directors. Herb Ross, the company’s chief financial officer, will act as interim chief executive officer while a search starts for a new chief executive.
“His retirement comes at an opportune time as we transition out of the pulmonary space and focus our efforts entirely on oncology,” said Ted Love, chair of the KaloBios Board of Directors in a statement. “The Board is confident that Herb and the team will continue to advance the company’s oncology programs while we commence an immediate search for a permanent CEO with strong oncology development expertise.”
According to the company’s Form 8-K filings with the United States Securities and Exchange Commission on Jan. 27, 2015, KaloBios expects to complete most of the restructuring efforts in the second quarter of 2015. The restructuring charges are expected to range between $1.6 and $1.8 million. Those charges are made of up expenses tied to termination benefits, as well as expensed connected to the retirement of Pritchard.
The failed Phase II trial for KB001-A was only another bit of bad news for the company. In 2014 the company’s Phase II trial of KB003 for asthma failed. Paris-based Sanofi also rejected a $290 million partnership deal.
As of today, KaloBios stock is selling for 39 cents per share.
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