By Vidya L Nathan
BANGALORE, Oct 16 (Reuters) - Cell Genesys Inc (CEGE.O: Quote, Profile, Research, Stock Buzz) said it was exploring strategic alternatives, including the sale and liquidation of the company, and stopped the late-stage trial of its prostate cancer drug, sending its shares tumbling 77 percent to a life-time low.
The company also plans to cut about 75 percent of its workforce of 290 employees by the end of the year, and said it was considering options such as a merger with or acquisition by another company and sale of assets.
"There is a higher likelihood that Cell Genesys would acquire a technology to rebuild shareholder value, over being acquired by somebody else," Rodman & Renshaw analyst Ren Benjamin told Reuters.
The fact that they have a good cash position does support that, he added. The company had about $150 million in cash as of Sept. 30, and expects to have about $128 million by the end of the year.
The company could not be immediately reached for comment.
Cell Genesys also said it was terminating the employment of Chief Medical Officer Robert Dow, effective Oct. 30.
The company, which expects a personnel-related charge of $12.8 million in the fourth quarter, said it anticipated further job cuts in the first half of 2009. Continued...
