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Praecis to Cut 60 Percent of Work Force
Friday May 20, 2:55 pm ET
Praecis to Cut 60 Percent of Its 182-Person Work Force, Stop Promoting Cancer Treatment

WALTHAM, Mass. (AP) -- Praecis Pharmaceuticals Inc. said Friday it is cutting 60 percent of its 182-person work force and halting U.S. promotion of a prostate cancer treatment and development of a medication for Alzheimer's disease.
The moves are part of a cost-cutting campaign that Praecis said will refocus its efforts "on its most promising assets." Those include development of an oral compound for treatment of cancer and autoimmune diseases, and technology to aid drug discovery.

Praecis said it will reduce its work force to 75 employees, with about 100 workers losing their jobs immediately and a smaller number leaving in the coming months. The company said it will also consider relocating from its headquarters and research building in Waltham to a smaller facility.

The company said it is suspending U.S. promotion of its prostate cancer therapy Plenaxis and will work with the Food and Drug Administration to make the drug available to patients already on the therapy. Praecis will continue seeking approval to market the drug in Europe.

In December, Praecis said it was having continuing problems persuading U.S. doctors to prescribe Plenaxis, in part because of concerns about insurance reimbursement.

The company also said Friday it is suspending clinical trials for its Alzheimer's treatment, called Apan.

"We believe that through these actions we have positioned the company for future success," said Kevin McLaughlin, Praecis' president and chief executive officer.

The company's stock traded around $6 a share last spring but has since steadily declined.

Praecis shares rose 3 cents, or 4.2 percent, to 74 cents in late trading on the Nasdaq Stock Market, near the bottom of the stock's 52-week range of 63 cents to $5.27.