Xenova announces plans to cut jobs

In the wake of its recent acquisition of Cantab Pharmaceuticals(Marketletter May 21), Xenova of the UK says that it has completed " a major strategic review" of its enlarged R&D pipeline. The company said that the review has focused on the elimination of duplicated resources and other efficiency improvements, and "will result in a significant reduction in operating expenses."

Last year, operating expenses for the firms combined was L24.3 million ($34.2 million), comprising L14.8 million for Cantab, and Xenova expects to reduce these costs by L9 million a year, based on the current year's operating expenditure. As a result, 45 jobs have been lost "with immediate effect," and the firm noted that it had cash and equivalents of L24.9 million, as of March 31.

R&D update next month