Kosan full-year 2005 loss grows 34% cuts jobs

US cancer specialist Kosan Biosciences says that net loss for fourth-quarter 2005 was $6.8 million and $29.6 million for the full year, which represent declines of 1.4% for the former and 34% for the latter, prompting the firm to cut back on its work force.

The firm says its corporate restructuring reflects "a realignment of research priorities and corporate operations to support its clinical products and pipeline opportunities," and will see the number of its employees drop from 119 to 80, primarily affecting research and general and administration personnel. However, on a positive note, in July 2005 the firm secured an as yet untapped $35.0 million credit facility.

Total operating expenses for the quarter were $11.2 million versus $11.1 million for the like, year-ago period. Its 2005 costs reflect the firm's continued investment in its Hsp90 inhibitor program, as well as in its epothilone project in partnership with Roche in 2005.