Dec 15 (Reuters) - Biotechnology company EntreMed Inc ENMD.O said it would cut about 60 percent jobs and announced a string of management changes to preserve capital and focus on the development of its most advanced drug candidate.
EntreMed said its Chief Executive James Burns will be leaving the company along with Chief Financial Officer Dane Saglio to reduce further cost.
The company would record a charge of about $1.8 million in the fourth quarter.
“These are difficult economic times for biotech companies. EntreMed has made the transition to a clinical organization, so a smaller, focused organization will allow us to preserve cash and concentrate on ENMD-2076,” Chief Executive James Burns said. ENMD-2076 is being studied in an early-stage trial in patients with solid tumors and multiple myeloma.
EntreMed is the latest addition to a string of several small biotechs who have been forced to take desperate measures like stalling clinical trials and cutting jobs as the tightening credit market makes new funding unavailable.
Shares of the company were down 2 cents at 23 cents Monday on Nasdaq. (Reporting by Anand Basu in Bangalore; Editing by Jarshad Kakkrakandy)