September 19, 2016
By Alex Keown, BioSpace.com Breaking News Staff
SOUTH SAN FRANCISCO – Although 46 people are losing their jobs, the most recent round of layoffs at Bay Area Rigel Pharmaceuticals may not be a bad thing for the company’s health.
A recent analysis by the San Francisco Business Times indicates that although there have been job cuts, the company is set to commercialize its lead drug candidate, fostamatinib, an oral spleen tyrosine kinase (SYK) inhibitor to treat adult chronic and persistent immune thrombocytopenia (ITP). In order to prepare for commercialization, Rigel recently underwent a restructuring that includes a shift from a research-and-discovery company to a commercial organization. Part of that reorganization means the company slashed 38 percent of its workforce, 46 people. The reorganization is expected to save the company between $17 and $20 million annually. Rigel said it will be able to handle ongoing research and development with a smaller staff, the Business Times reported.
While the company positions itself for commercialization, Rigel’s lead drug still has to await final results of its Phase III study, which is expected in October or early November. The U.S. Food and Drug Administration (FDA) granted the drug Orphan Drug designation. The drug is believed to treat the underlying autoimmune mechanism of ITP. In ITP, the patient’s blood platelets are attacked by the immune system. It affects about 50 to 60,000 adults in the U.S. Current treatments include steroids, blood platelet production boosters (TPOs) and splenectomy.
Early data of fostamatinib has shown that 18 percent of patients taking the drug in the trials achieved a stable platelet response. The Business Times said that none of the patients in the 76-patient study who took a placebo saw any kind of statistical improvement.
As Rigel looks forward to commercializing its ITP treatment, the company has hired Eldon Mayer III, formerly of Questcor Pharmaceuticals , as its new chief commercial officer—a move to prepare the way for life after regulatory approval. The Business Times said Mayer is charged with building a sales and marketing staff for Rigel. How many positions the company will likely put into place is unknown, however the Business Times said the salaries of those jobs are likely to be lower than those paid to its research scientists.
Shares of Rigel are up this morning, trading at $3.54. The stock is slightly down from its high of $3.93 per share, which it hit on Aug. 30.
