Renovo to lay off bulk of staff and cease work on Juvista
DRUG discovery firm Renovo has announced plans to scrap work on its main Juvista anti-scarring product and lay off 100 staff after it disappointed in Phase III trials earlier this month.
The Manchester-based company said this morning that after further investigation, it has found the efficacy of Juvista “is insufficient to demonstrate significant benefit when tested in a broad population of scar revision patients”.
As a result, its US partner Shire LLC has terminated its licensing agreement of the drug in the US and has handed the rights to market the drug in North America back to the company.
A 90-day consultation period has begun to reduce headcount by more than 100 and to trim the size of its board.
The firm is also halting recruitment of people to its ongoing Adaprev trial for a its tendon repairs drug, which is due to report in the second half of 2011, but would continue with its Prevascar concept trial.
It said that it would explore all options to maximise shareholder value, including the potential sale of all of its major drug discovery programmes. Renovo also still has around £44m in cash reserves.
The company’s chief executive Professor Mark Ferguson, said: “We are extremely surprised and disappointed with the Juvista Phase III trial result in scar revision surgery.
“The board is seeking to maximise shareholder value from the remaining assets of Renovo.
“The significant restructuring consultation plan is sad and difficult for all of Renovo’s excellent staff, whom I personally wish to thank for their hard work and dedication”.
