Genmab cuts 15% of its workforce

Genmab A/S (CSE:GEN) will reduce headcount by 33 (15%) to 180 to account for reduced workload following the restructuring of the ofatumumab program with GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) and Genmab's plan to partner zalutumumab. Genmab said the cuts, which are expected to save about DKK30 million ($5.6 million) annually, are part of previously announced plans to reduce operating expenses by 20% in 2011.

Last week, Genmab said it believes an MAA for zalutumumab for second-line head and neck cancer in Europe could be pursued based on available data, but that an additional clinical study would be required prior to a submission in the U.S. The company is seeking a partner for the program. In September, Genmab and GSK said that GSK will discontinue further development of IV ofatumumab for autoimmune indications, including rheumatoid arthritis, for which the formulation was in Phase III testing. GSK will focus instead on development of a subcutaneous formulation, which the companies said has the potential to offer added convenience and improved tolerability. ...