Abgenix to Consolidate Research Facilities in Preparation for Expanded Development and Commercial Operations
28 Juni 2005 - 8:30PM
PR Newswire (US)
Abgenix to Consolidate Research Facilities in Preparation for
Expanded Development and Commercial Operations FREMONT, Calif.,
June 28 /PRNewswire-FirstCall/ -- Abgenix, Inc. (NASDAQ:ABGX) today
announced that the company is consolidating its research and
pre-clinical activities into the company's Canadian facility in
Burnaby, British Columbia. With the consolidation, Abgenix
maintains appropriate research capabilities and capacity to meet
its future internal needs, as well as those of its partners.
Abgenix intends to sublease the resulting excess research space
near its Fremont headquarters, while retaining its pilot, clinical
and commercial scale manufacturing capabilities, also located in
Fremont. These changes will result in a reduction of approximately
15% in the company's workforce. These steps are designed to focus
resources on the company's development pipeline, and particularly
the potential commercial opportunity of its lead product candidate,
panitumumab, the first fully human monoclonal antibody to inhibit
EGFr. Panitumumab, which was generated with Abgenix's XenoMouse(R)
technology, is being evaluated as both a monotherapy and in
combination with other agents for the treatment of various types of
cancer, including colorectal, lung and kidney. "We concluded from
our strategic review that we have excess capacity, primarily in our
research personnel and facilities, and believe we will maximize
efficiency by consolidating our research and preclinical activities
in our Canadian location," said Bill Ringo, president and chief
executive officer of Abgenix. "These adjustments will enable us to
expand our development and commercial operations later this year
and next, as we prepare for the manufacturing and potential
co-promotion of panitumumab with our partner, Amgen," Mr. Ringo
added. Abgenix expects to incur restructuring charges, most of
which will be recorded in the second quarter of 2005, of
approximately $13 to $16 million, including approximately $11 to
$13 million related to lease obligations and leasehold improvements
and approximately $2 to $3 million for severance, relocation and
other termination benefits. To the extent applicable, the company
will update its financial guidance during its second quarter
financial conference call scheduled for July 26. About Panitumumab
Co-developed by Amgen and Abgenix, panitumumab is an
investigational product in a novel class of targeted cancer
treatments called epidermal growth factor receptor (EGFr)
inhibitors. Panitumumab (formerly ABX-EGF) is the first fully human
monoclonal antibody directed against EGFr and is being evaluated as
both a monotherapy and in combination with other agents for the
treatment of various types of cancer, including colorectal, lung
and kidney. Panitumumab was generated with Abgenix's XenoMouse(R)
technology, which creates a fully human monoclonal antibody that
contains no murine (mouse) protein. The fully human nature of
panitumumab may result in a safety profile with a low incidence of
infusion reactions and antigenicity. These are attributes currently
being investigated in clinical trials. Pivotal clinical studies
evaluating panitumumab as a monotherapy in colorectal cancer
patients who have failed standard chemotherapy are ongoing with a
bi-weekly dosing regimen. About Abgenix Abgenix is a
biopharmaceutical company focused on the discovery, development and
manufacturing of human therapeutic antibodies. The company's
antibody development platform includes a leading technology and
state-of-the- art manufacturing capabilities that enable the rapid
generation, selection and production of high affinity, fully human
antibody product candidates to a variety of disease targets.
Abgenix leverages its leadership position in human antibody
technology to build a diversified product portfolio through its own
development efforts and the establishment of collaborations with
multiple pharmaceutical and biotechnology companies. For more
information on Abgenix, visit the company's website at
http://www.abgenix.com/. Statements made in this press release
about Abgenix's plans to consolidate its research and pre-clinical
activities and the costs of such consolidation, as well as
statements regarding Abgenix's technologies, product development
activities and collaborative arrangements, other than statements of
historical fact, are forward-looking statements and are subject to
a number of uncertainties that could cause actual results to differ
materially from the statements made, including risks associated
with the timing and success of clinical trials, the progress of
research and product development programs, product manufacturing,
regulatory approval processes, competitive products and services
and the extent and breadth of Abgenix's patent portfolio. Please
see Abgenix's public filings with the Securities and Exchange
Commission for information about risks that may affect Abgenix,
including its Form 10-K for the year ended December 31, 2004, and
periodic reports on Form 10-Q and Form 8-K. XenoMouse(R) is a
registered trademark of Xenotech, a wholly-owned subsidiary of
Abgenix, Inc. DATASOURCE: Abgenix, Inc. CONTACT: Ward Wolff, Senior
Vice President and Chief Financial Officer of Abgenix, Inc.,
+1-510-284-6870; or Blair Schoeb, +1-917-432-9275 (media &
investors), for Abgenix, Inc. Web site: http://www.abgenix.com/
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