Genmab cuts jobs, drops zanolimumab

Copenhagen, Denmark-based Genmab A/S, which has recently posted deeper first-half 2008 loss and forecast a full-year deficit of 800.0 million kroner ($146.0 million; Marketletter September 8), says that it is discontinuing development of zanolimumab (HuMax-CD4). In addition, as a result of a portfolio review and assessment of the organization, Genmab is reducing its headcount by 101. These decisions are not expected to have a material effect on this year's guidance.

As the company approaches potential commercialization, it says that the need to establish a sustainable level of R&D investment is a key priority. Genmab has conducted a review of its portfolio and organization to set priorities that will build the greatest potential value. The company will sharpen its focus on cancer therapeutics and a less broad, but higher potential portfolio.

Zanolimumab is currently in a Phase III pivotal study to treat cutaneous T-cell lymphoma. As Genmab has previously indicated, patient recruitment into this evaluation has been slow, which the company believes is due to the relatively small market potential in CTCL, the introduction of a new sector therapeutic to the market and numerous competing clinical trials. In light of these issues, Genmab considers that the significant investment required to take the product through to approval is no longer a good use of its resources.