Nastech Pharmaceutical of Bothell is cutting 50 jobs in its second layoff in less than three months.
Nastech Pharmaceutical said Tuesday it will cut its work force by nearly a third, as the company works to steady itself after Procter & Gamble pulled out of a lucrative joint research effort late last year.
Some 50 employees “all the way across the company” will lose their jobs, mostly in Nastech’s Bothell offices, said President Gordon Brandt. Nastech currently employs 158.
The company will know specifically what jobs will be cut in a couple of weeks, Brandt said.
This is Nastech’s second round of layoffs in less than three months. In late November the firm announced plans to eliminate 72 jobs. Back then Nastech also said it would spin off an emerging technology subsidiary called MDRNA and focus on its midstage clinical programs.
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“We need to continue to do belt-tightening,” Brandt said.
The new reductions will slow the company’s cash burn rate by at least $11 million in 2008, a Nastech statement said. At the end of last year’s third quarter, the company had $58.1 million in cash, cash equivalents and investments.
The company expects key clinical data in the coming quarters that could enable it to pursue partnerships with other biotechs or pharmaceutical firms, Brandt said. The spinoff of MDRNA is also expected to bring in some revenue, he said.
Nastech shares closed at $2.22 Tuesday, down 6.72 percent. The stock traded at more than $14 a share before Procter & Gamble abandoned a partnership to develop a nasal spray to treat osteoporosis.
Ángel González: 206-515-5644 or firstname.lastname@example.org