San Diego-based Sangart is restructuring, triggering a "significant reduction in work force" as it names four new additions to its executive staff. The executive changes include the appointment of Howard Levy MD, PhD, as chief scientific officer.
No details on the layoffs were provided in the company's release, but Sangart said that the axe will fall in its product manufacturing division. The developer says it is cutting back on spending now and devoting more attention to advancing its lead therapy: Hemospan, a hemoglobin-based oxygen carrier designed to serve as an alternative to blood transfusions. Sangart announced in the spring of 2007 that it had raised $50 million from an undisclosed investor in its sixth round.
"Our recent successful Phase III clinical studies of Hemospan demonstrated very encouraging efficacy results for the prevention and treatment of hypotension in hip replacement procedures," said CEO said Brian O'Callaghan. "These trials provide a platform from which to conduct the pivotal clinical studies that will be necessary to establish the clinical benefit of treating patients with Hemospan. The appointment of key executives and the decision to reduce our workforce, which was difficult but necessary, will enable us to focus our resources on these upcoming clinical trials."
- check out the Sangart release