Focus on advancing key programs to clinical proof of concept by 2010, without the need for additional capital
LEXINGTON, Mass.--(BUSINESS WIRE)--Mar. 13, 2009--
Synta Pharmaceuticals Corp. (NASDAQ: SNTA), today announced a workforce
reduction of approximately 90 positions, to a total of approximately 130
positions, allowing the Company to operate with current cash reserves
for approximately two more years without the need for additional equity
financing. Workforce reductions have been made across the organization
while maintaining strength in core capabilities of discovery and
development to support the goals of new partnerships and achieving
clinical proof of concept by 2010, without the need for further capital.
“This restructuring is unfortunately a necessity in light of the results
of our Phase 3 clinical trial of elesclomol in metastatic melanoma,”
said Safi Bahcall, Ph.D., President and CEO of Synta. “I would like to
express my gratitude for the contributions and commitment of the many
outstanding employees who are impacted by the restructuring announced
today. These decisions are never easy, and my heartfelt sympathies go
out to these employees and their families. However, we needed to act now
to ensure that Synta has the resources, independent of external
financial conditions, to continue to advance our most promising pipeline
compounds and research programs. These programs have generated
substantial interest among our scientific and medical collaborators, as
well as potential pharmaceutical industry partners, and we share our
collaborators’ excitement for their future potential.”
Synta has five programs in clinical or preclinical development and
several others in the discovery stage, representing diverse mechanisms,
chemical structures, and market opportunities. The programs in clinical
or preclinical development are:
-
STA 9090: a novel, synthetic
Hsp90 inhibitor that is currently enrolling patients in two Phase 1
clinical trials in solid tumors, with Phase 2 trials in a number of
indications planned for later this year;
-
Elesclomol: a first-in-class
oxidative stress inducer; clinical trials currently suspended. No
decision has yet been made on whether to continue development of
elesclomol in melanoma or other indications, pending further analysis
of the results from the Phase 3 SYMMETRY(SM) trial in
melanoma;
-
Apilimod: an oral IL-12/IL-23
inhibitor currently enrolling patients in a Phase 2a clinical trial in
rheumatoid arthritis;
-
STA-9584: a vascular disrupting
agent for the treatment of cancer, currently in preclinical
development;
-
CRACM channel inhibitors: novel
small molecules targeting ion channels known as calcium
release-activated calcium modulator (CRACM) channels, critical to
immune cell function; for the treatment of inflammatory diseases.
Elesclomol is being developed under a joint development and
commercialization agreement with GlaxoSmithKline. A total of $130
million in payments have been achieved by Synta under this agreement,
and an additional $880 million in potential future milestones are
achievable should the program continue. Under the collaboration
agreement, GlaxoSmithKline pays the substantial majority of program
costs.
The CRACM channel inhibitors are being developed under a strategic
alliance with Roche that provides for reimbursement of all research,
preclinical, and clinical costs incurred by Synta, as well as up to $490
million in development milestone payments, and up to $510 million in
commercial milestone payments.
“One of our strategic decisions two years ago was to manage Synta so we
could advance our next generation of programs to clinical proof of
concept and/or partnerships regardless of the outcome of the Phase 3
SYMMETRY trial. This planning is consistent with the long-term approach
we have always taken,” said Dr. Bahcall. “While we were disappointed by
the negative results from the SYMMETRY trial, and are awaiting the
results of additional analysis to determine the future direction for
this compound and novel mechanism, we are fortunate to have exciting
data from our other pipeline programs. We look forward to presenting
some of these results at scientific and medical meetings, and in
peer-reviewed publications, later this year.”
Additional details on status and objectives of key programs will be
provided in the Company’s 10-K filing later this month.
About Synta Pharmaceuticals
Synta Pharmaceuticals Corp. is a biopharmaceutical company focused on
discovering, developing, and commercializing small molecule drugs to
extend and enhance the lives of patients with severe medical conditions,
including cancer and chronic inflammatory diseases. Synta has a unique
chemical compound library, an integrated discovery engine, and a diverse
pipeline of clinical- and preclinical-stage drug candidates with
distinct mechanisms of action and novel chemical structures. All Synta
drug candidates were invented by Synta scientists using our compound
library and discovery capabilities. For more information, please visit www.syntapharma.com.
Safe Harbor Statement
This media release may contain forward-looking statements about Synta
Pharmaceuticals Corp. Such forward-looking statements can be identified
by the use of forward-looking terminology such as "will", "would",
"should", "expects", "anticipates", "intends", "plans", "believes",
"may", "estimates", "predicts", "projects", or similar expressions
intended to identify forward-looking statements. Such statements,
including statements relating to the status, timing and progress of our
clinical and preclinical programs, and financial outlook for 2009 and
beyond, reflect our current views with respect to future events and are
based on assumptions and subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such forward-looking statements, including those described in
"Risk Factors" of our Form 10-K for the year ended December 31, 2007 as
filed with the Securities and Exchange Commission. Synta undertakes no
obligation to publicly update forward-looking statements, whether
because of new information, future events or otherwise, except as
required by law.
Source: Synta Pharmaceuticals Corp.
Synta Pharmaceuticals Corp.
Rob Kloppenburg, 781-541-7125