Rigel Pharma Reduces Workforce By 38%

(RTTNews) - Rigel Pharmaceuticals (RIGL) said that it has reduced its workforce by 38%, resulting in the elimination of 46 positions, mostly in the research area. A smaller research department will continue Rigel's mission to identify and develop novel small molecule therapeutics and will maintain active programs in immunology and oncology.

The reduction and refocus is expected to provide about $17 million - $20 million in savings annually going forward. Rigel is still assessing the full charges associated with this measure including approximately $5.7 million in cash-related restructuring expenses, which are expected to be recorded predominantly in the third quarter of 2016.

The company announced plans to build a commercial organization to support the potential launch of fostamatinib, its oral SYK inhibitor, for the treatment of chronic immune thrombocytopenia or ITP. The company recently reported that fostamatinib met the primary endpoint in the first of two identical Phase 3 studies in chronic ITP. Results of the second Phase 3 clinical study are expected in late October or early November.

In addition, Donald Payan, Rigel co-founder, has retired from the board of directors and from his position as executive vice president and president of discovery and research.

Rigel also announced that Eldon Mayer III will be joining Rigel as executive vice president and chief commercial officer to lead the launch of fostamatinib, including the establishment and management of a commercial organization.

Most recently, Mayer successfully led Questcor Pharmaceuticals' commercial strategy and functions, which included a product launch into multiple indications and physician audiences that resulted in considerable increases in Questcor's sales revenue during his tenure. His prior experience included various commercial management roles for Connetics Corporation, Chiron Corporation, Alza Corporation and Schering-Plough.