Cytokinetics cuts work force, ends cancer research

Biotechnology company Cytokinetics Inc. said Tuesday it will slash its work force by 29 percent and end research activities on potential cancer treatments as part of a reorganization.

The company plans on focusing its research and development on muscle biology programs, while finishing the midstage study program on its lead drug candidate CK-1827452, aimed at treating heart conditions.

Cytokinetics counts Thousand Oaks, Calif.-based Amgen Inc. and U.K.-based GlaxoSmithKline among its partners.

"After critically reviewing our current research and development as well as other business activities, we have made the decision to reposition our company to what we believe may be the most attractive value-generating opportunities," said President and Chief Executive Robert I. Blum in a statement.

Following the realignment, the company said it will have 111 workers. It is providing severance, employee benefit continuation and career transition assistance to the employees affected by the restructuring. Cytokinetics expects charges of about $2.5 million in the third quarter because of the job cuts.

The move will help lower operating expenses by $12 million to $16 million in 2009, the company said.