Aveo Oncology to cut 140 jobs as part of restructuring
Astellas pulls out of financing future trials of tivozanib in renal cell carcinoma
Aveo Oncology is to cut 140 jobs, or 62% of its workforce, as part of a restructuring aimed at securing the company’s future.
The Cambridge, Massachusetts-based developer of cancer therapeutics said the job cuts, combined with other restructuring measures, would reduce costs over the next two years by approximately $190m and allow it to refocus its resources on the ongoing clinical development of tivozanib in colorectal and breast cancer, as well as advancing key pipeline and preclinical products.
‘We believe it is likely that tivozanib will not receive FDA approval for renal cell carcinoma (RCC),’ said William Slichenmyer, Chief Medical Officer of Aveo. ‘With the decision of our partner, Astellas, not to proceed with a European filing for tivozanib or financially support future clinical trials in RCC, Aveo has no plans at this time to pursue tivozanib development in RCC.’
Tuan Ha-Ngoc, President and CEO of Aveo, added that the company intends to focus its R&D efforts on areas in oncology where the ‘unique insights derived from Aveo’s proprietary Human Response Platform will allow the development of targeted agents with the potential to provide substantial clinical benefit for specific biomarker-defined patient populations that could enable a clear regulatory pathway to approval’.
Aveo has no plans at this time to pursue tivozanib development in RCC
Aveo and Astellas will continue the BATON Phase 2 clinical trials of tivozanib in breast and colorectal cancer. The results of these trials are expected in 2014.
The BATON-BC study of tivozanib in triple negative breast cancer is currently enrolling patients and data results are expected in late 2014 or early 2015.
Aveo will also continue the development of AV-203, a clinical-stage ERBB3 (HER3) inhibitory antibody candidate, currently in Phase 1.
As previously announced, the company intends to focus its efforts on further ficlatuzumab development through external collaborations.
In a separate announcment, Aveo says Elan Ezickson, Executive Vice President and Chief Operating Officer, after a transition period, will resign on 31 July to pursue new opportunities. Michael Bailey, currently Chief Commercial Officer, will assume the new role of Chief Business Officer, reporting to Ha-Ngoc on 1 August.
Aveo ended the first quarter of 2013 with US$192m in cash, and estimates year-end cash of approximately $115m.