Five Prime to cut workforce by 20 percent, sharpen focus on clinical programmes

Five Prime Therapeutics announced restructuring plans that will involve eliminating 41 jobs, representing about 20 percent of its current headcount, mainly in the areas of research, pathology and manufacturing. It also plans to focus resources on its development pipeline comprising five clinical-stage cancer programmes in various solid tumour types and addressing multiple cell types in the tumour microenvironment.

CEO Aron Knickerbocker said "while we are on track for multiple data read-outs and potential phase advances from our pipeline in 2019," the company "felt it was necessary to sharpen our focus on our current clinical programmes and the advancement of our later-stage research initiatives." 

Five Prime estimated that the restructuring, in addition to other cost-reduction efforts, will lower its operating expenses for the 2019 fiscal year by $10 million compared to the previous year. It also anticipates pre-tax charges of about $2 million to cover severance and other costs related to the restructuring, most of which will be recorded during the first quarter. The company expects to end 2019 with $148 million to $153 million, and ended last year with $270 million, adding it "believes this cash is sufficient to fund programmes through multiple data readouts."

The drugmaker is currently developing bemarituzumab, an antibody targeting fibroblast growth factor receptor 2, for the treatment of cancer. Together with partner ZAI Lab, it initiated patient dosing in a Phase III study of the drug, also known as FPA144, in previously untreated patients with advanced gastric and gastroesophageal junction cancers last October. 

Five Prime is also developing the experimental colony-stimulating factor-1 inhibitor cabiralizumab in partnership with Bristol-Myers Squibb. The companies unveiledearly-stage data for the therapy in combination with Bristol-Myers Squibb's Opdivo (nivolumab) in 2017 in patients with advanced solid tumours . Cabiralizumab is now being evaluated in two Phase II trials in pancreatic cancer.

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