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.
SOURCE Abgenix, Inc.
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Related links:
http://www.abgenix.com
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.
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