Addex makes job cuts to reduce costs
Restructures to focus on core r&d programmes and strategic partnerships
Addex Pharmaceuticals is to cut 25% of its workforce in a move to reduce costs and strengthen its position in allosteric modulation-based drug discovery and development.
The Swiss firm says the move will realise annual savings of approximately CHF8m (€6.6m; US$9.5m; £5.9m).
Addex will continue to partner large pharmaceutical and biotechnology companies while building a pipeline of high-value therapeutic programmes.
After reviewing its operations Addex says it will focus on changes that ‘prioritise strong management, timely decision-making and efficient use of resources’.
Earlier this week, chief executive Vincent Mutel stepped down from his position, with Andre Mueller acting as executive chairman and leading a subcommittee of directors to manage the firm until a new chief executive is appointed.
The company will continue to focus on research and development in its core therapeutic areas – central nervous system, metabolism and inflammation – and maintain its core competencies, including those in preclinical and clinical development.
Addex plans to pursue new strategic partnerships on mGluRs, GLP-1 receptor, TNF receptor super family, interleukin receptor family and receptor tyrosine kinase super family. The three existing drug discovery and development partnerships are currently funded by Ortho-McNeil-Janssen Pharmaceuticals and Merck & Co, which have assumed responsibility for further development following successful discovery collaborations.
Addex has initiated a consultation process with staff affected by the restructuring. During this, the firm will determine the specific details and an announcement detailing the new organisation and the resulting cost savings will then be made.
‘The loss of people's jobs at Addex is something the board regrets,’ said Mueller. ‘However, the future of the company is now more secure. We believe Addex is a world class research and development organisation capable of delivering on the promise of this exciting technology.’