Incyte cuts staff, buys Maxia

INCY on Tuesday announced a restructuring and an acquisition that are intended to help it transition towards drug development. In particular, the company plans to eliminate $88 million of annual expenses by reducing 37% of its 700-person workforce, decreasing spending, and consolidating different offices. INCY said the restructuring will not affect the company's plan to expand its drug discovery efforts, and also announced that it has launched its first fully staffed drug discovery program focused on identifying chemokine receptor antagonists for inflammatory diseases. INCY also said it plans to hire 80-100 additional scientists during the next year to support its drug discovery programs.

Separately, INCY announced that it will acquire Maxia Pharmaceuticals (San Diego, Calif.), a developer of small molecule protein phosphatase inhibitors, for up to $28.3 million in cash and stock. INCY could pay an additional $14 million in future clinical milestones. INCY said Maxia's programs in cancer and inflammation complement its small molecule and protein therapeutic programs. Maxia's most advanced compound is MX6, an in-licensed selective retinoid that is in European Phase II testing for cervical dysplasia, a precancerous condition. ...