Targanta Therapeutics Corp (MM) (NASDAQ:TARG)
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Targanta Therapeutics Corporation (Nasdaq: TARG) today announced a
strategic restructuring including a staff reduction of 86 employees,
approximately 75% of the company's total workforce. Following the
restructuring, the company expects to have 27 employees. The Company
expects the majority of the plan to be implemented by the end of
December 2008.
The restructuring and corresponding reduction in workforce is meant to
preserve capital, while maintaining key personnel needed to support the
regulatory approval process for oritavancin in the European Union, while
simultaneously clarifying the regulatory pathway for oritavancin with
the U.S. Food and Drug Administration (FDA) and developing the protocol
for an additional Phase 3 study of oritavancin for the treatment of
complicated skin and skin structure infections (cSSSI).
Mark Leuchtenberger, President and CEO of Targanta, commented, "Targanta
has transitioned from a company preparing for the commercial launch of
its lead drug candidate to a late-stage clinical development company
since receiving the FDA’s Complete Response Letter to our New Drug
Application (NDA) for oritavancin. Targanta’s management team and its
Board of Directors are in alignment that our best path forward to
achieving our corporate goals and preserving shareholder value is to
restructure the Company and focus our resources and capital in a way
that efficiently advances oritavancin for the treatment of cSSSI. This
restructuring in no way reflects the tireless efforts and tremendous
contributions of the Targanta team who have worked so hard to advance
this much needed antibiotic therapy.”
As part of the restructuring and to further reduce costs, Chief
Development Officer, Pierre E. G. Etienne, M.D.; Chief Commercial
Officer, Mona Haynes; and, Vice President of Operations and Head of
Targanta’s Indianapolis, Indiana site, Roger D. Miller, will be leaving
the company.
Employees affected by the reduction have been offered severance
benefits. The company expects to incur restructuring charges of
approximately $5.8 million.
About Oritavancin
Oritavancin is a novel, semi-synthetic lipoglycopeptide antibiotic
candidate with potent bactericidal (killing) activity against a broad
spectrum of gram-positive bacteria. The oritavancin NDA submission
included data from 19 clinical trials, including two pivotal Phase 3
clinical trials examining the safety and efficacy of oritavancin in the
treatment of cSSSI, both of which met their primary endpoints. The NDA
dossier also included data from more than 2,100 individuals and in
vitro activity data on oritavancin against more than 9,000 clinical
bacterial isolates, including a broad range of gram-positive strains
resistant to commonly used antibiotics such as oxacillin, methicillin,
vancomycin, daptomycin, and linezolid.
About Targanta Therapeutics
Targanta Therapeutics Corporation (Nasdaq: TARG) is a biopharmaceutical
company focused on developing and commercializing innovative antibiotics
to treat serious infections in the hospital and other institutional
settings. The Company’s pipeline includes an intravenous version of
oritavancin, a semi-synthetic lipoglycopeptide antibiotic currently
awaiting EU regulatory approval, and a program to develop an oral
version of oritavancin for the possible treatment of Clostridium
difficile-related infection. The Company has operations in
Cambridge, MA, Indianapolis, IN, and Montreal, Québec, Canada. For more
information on Targanta, visit www.targanta.com.
Safe Harbor Statement
This press release contains “forward-looking statements” that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These are statements that are predictive
in nature, that depend upon or refer to future events or conditions or
that include words such as “potential,” “may,” "will," "expects,"
"projects," "anticipates," "estimates," "believes," "intends," "plans,"
"should," "seeks," “hope” and similar expressions. Forward-looking
statements involve known and unknown risks and uncertainties that may
cause actual future results to differ materially from those projected or
contemplated in the forward-looking statements. Forward-looking
statements may be significantly impacted by certain risks and
uncertainties described in Targanta’s filings with the Securities and
Exchange Commission. The risks and uncertainties referred to above
include, but are not limited to, delays in obtaining or a failure to
obtain regulatory approval for Targanta’s product candidates;
unfavorable clinical trial results; Targanta’s potential inability to
initiate and complete pre-clinical studies and clinical trials for its
product candidates; the possibility that results of pre-clinical studies
are not necessarily predictive of clinical trial results; and those
other risk factors that are described more fully in the Company’s
filings with the Securities and Exchange Commission. Targanta does not
undertake any obligation to update any of these forward-looking
statements to reflect a change in its views or events or circumstances
that occur after the date of this release.