Avigen is cutting 70 percent of its work force and is looking to downsize its office space as it comes to terms with last month's failure of a new drug for multiple sclerosis. The company terminated its development program for AV650 after it failed a mid-stage trial.
Avigen is cutting 27 workers in the restructuring and is exiting its lab space in Alameda. And now it will concentrate on either selling or partnering AV411 for pain and AV513 to prevent blood clotting. Avigen says it will end the year with $49 million in cash and securities.
"We believe our strong cash position and management team will make Avigen an attractive partner in this challenging financial climate," CEO Kenneth Chahine said in a prepared statement.
- read Avigen's statement
- check out the report from the San Francisco Business Times