Aveo Pharma plans restructuring, 3Q loss widens
CAMBRIDGE, Mass. (AP) — Aveo Pharmaceuticals will cut about 17 percent of its work force and reduce research spending as it prepares for a possible launch of its kidney cancer treatment, tivozanib.
The Cambridge, Mass., company said Tuesday that its third-quarter loss widened to $30.1 million, or 69 cents per share, as collaboration revenue fell. That compares to a loss of $23.8 million, or 55 cents per share, in last year's quarter. Revenue dropped to $1 million from $3.6 million.
Analysts surveyed by FactSet expected, on average, a loss of 67 cents per share on $1.9 million in revenue.
Aveo said last month it has asked the Food and Drug Administration for marketing approval of tivozanib as a treatment for advanced renal cell carcinoma, the most common type of kidney cancer. Tivozanib is a tablet designed to be taken once a day. Aveo and partner Astellas Pharma Inc. also are studying it as a treatment for several other types of cancer.
Aveo said Tuesday it will cut about 45 jobs and eliminate 30 open positions. It also plans to reduce spending on early-stage research. The company said the expense cuts should save about $100 million over the next three years.
CEO Tuan Ha-Ngoc said in a statement the savings will position Aveo well to successfully launch tivozanib.
The company will continue to study a drug candidate called ficlatuzumab as a potential lung cancer treatment. Earlier this year, Aveo Pharmaceuticals Inc. renamed itself Aveo Oncology as part of a rebranding effort, but it kept its legal name.
The company ended the third quarter with $189.7 million in cash, cash equivalents and marketable securities.