Alpha-Beta Cuts Workforce In Wake Of Betafectin Delays

Alpha-Beta Technology has announced that it plans to cut its workforceby almost 60% to 103 employees in a bid to reduce operating expenses and focus its principal resources on advancing the development of the company's lead product, the carbohydrate drug Betafectin (PGG-Glucan), as well as on its antifungal drug discovery program.

Disappointing PH III Data This setback for the company is due to the fact that although data from a recently-completed Phase III trial of Betafectin demonstrated a significant reduction in serious post-surgical infections, overall results were disappointing (Marketletter August 11). Alpha-Beta has scheduled a meeting with the US Food and Drug Administration to review the Phase III results and to discuss how to proceed with a Product License Application filing for Betafectin, as well as reviewing the design of a confirmatory clinical study in non-colorectal surgery patients.

Staff affected by the cutbacks will come from across the organization and includes positions at all of Alpha-Beta's facilities. The company plans to take a one-time restructuring charge of $500,000 in the current quarter and expects the move to result in a reduction in quarterly spending to approximately $4.5 million.