ZymoGenetics to cut workforce by 32%

Seattle, USA-based ZymoGenetics has announced a reduction in its workforce of around 32%, or 161 employees, as part of a corporate  restructuring. The company is reorganizing its operations to focus  resources on assets with the potential to generate the greatest value  for shareholders. It expects to realize an annual reduction in operating  expenses of approximately $30.0 million beginning in the third quarter  as a result of these actions.

"We're taking steps to reduce our costs, align our spending with our  highest corporate priorities and conserve our financial resources," said  chief executive Douglas Williams.

ZymoGenetics will continue to build the market for its approved product,  Recothrom Thrombin, topical (recombinant), while pursuing the research,  development and commercialization of novel biologic therapeutics. It  will discontinue ongoin research activities in oncology and focus future  research efforts in immunology, its core strength. Collaborative  transactions will receive greater emphasis to facilitate the development  and commercialization of the company's product candidates, while  retaining significant rights to participate in downstream value  generation. The recently-announced transaction with US drug major  Bristol-Myers Squibb for PEG-Interferon lambda serves as a model for  this strategy (Marketletters passim).