Xoma decides downsizing has its limits
Xoma Corp.'s most recent downsizing may test the limits of how far an established company can cut back and still maintain the requisite skills to move products through development. The Berkeley, Calif., company last week said it was reducing its workforce by 37 percent, from 229 to 145 positions and cutting its burn rate by $7.5 million to $24.5 million a year. That figure will rise as the company moves its lead compound, Neuprex recombinant bactericidal/permeability increasing protein (rBPI) into Phase II testing. XOMA ended the year with $40 million in cash and will take a $2.5 million restructuring charge in the fourth quarter