Avant Immunotherapeutics is restructuring to reduce ongoing operational costs by refocusing resources on certain programs. "This restructuring, while painful, is important so we can focus our resources on those programs that can create the greatest value for us," remarks Una S. Ryan, president and CEO.
The company will reduce its workforce by 30% and overall cost structure by approximately 18% over the next two years. Avant anticipates that it will exit from its St. Louis-based research facility later this year and move all essential research activities to its Needham, MA headquarters.
Avant estimates that it will incur cash restructuring costs of approximately $1 million, most of which will be reflected in its operating results in the second and third quarters of 2007. The company has not determined if it will incur any contract termination or noncash impairment charges in connection with the restructuring.
Avant reports that it will concentrate on building a portfolio of viral and bacterial vaccines for global heath and travelers around its technologies and development and manufacturing capabilities. The company says that it will no longer invest in biodefense R&D or support further clinical trials of its CETi and TP-10 programs. It will continue to support its partners in their development programs.