Swiss Santhera cuts jobs to slow cash burn
* 26 out 82 staff to go
* In-house drug discovery to end
* Company needs to cut costs after main drug setback
ZURICH, July 6 (Reuters) - Swiss specialty pharmaceutical company Santhera Pharmaceuticals (SANN.S) said it was cutting jobs and stopping in-house drug discovery to preserve cash as it seeks further approvals for its lead drug.
The company said it will cut 26 jobs, mainly in drug discovery, from its current workforce of 82. "The planned restructuring is a very difficult decision for us. It became necessary due to the current delay of our most advanced programme combined with a difficult financial environment," said Santhera Chief Executive Officer Klaus Schollmeier.
Santhera said in May its lead drug, Catena, missed its main aim in a late stage clinical trial in rare genetic neuromuscular disease Friedreich's Ataxia and that it would consider all options to preserve cash. [ID:nLJ172578]
"The measure will assure that we keep enough financial flexibility until Catena is approved in the U.S. and Europe and for other future growth opportunities," Schollmeier said on Monday. (Reporting by Jason Rhodes; Editing by David Holmes)
