Medigene slashes staff in profitability drive

German biotechnology company Medigene has said it will axe half of its workforce in a bid to save 5 million euros a year and reach profitability in 2011, but insists the move will not have an impact on its R&D plans.

Announcing the restructuring yesterday, Medigene said it would reduce its total employee headcount from 107 down to 55, with the cutbacks coming mainly among the teams involved in its recently-completed Phase II trial of breast cancer treatment EndoTAG-1 and the development of a spray-drying production process for the drug to replace the prior freeze-drying approach.

"Core competence teams in preclinical development, clinical trial design and clinical development will remain," it said.