Human Genome Sciences Inc. said Thursday William Haseltine, renowned for his work in genetic research, will retire from the biotechnology company he founded as it struggles to successfully develop new drugs.
The company said it plans to lay off 200 workers, or 20 percent of staff, to cut costs and it will reduce the number of drugs in development to focus on its most promising ones.
Rockville, Maryland-based Human Genome, which expects a first-quarter charge for the restructuring, said Haseltine, the company's chairman and chief executive, plans to retire later this year.
Haseltine, who founded the gene-based biotech company in 1992, said in a statement he would help with the reorganization before his departure, either when a successor is appointed or later this year. He said the company now needs a leader with experience in bringing drugs in the late stages of development to the market and in commercializing drugs.
Haseltine, along with Craig Venter, formerly of Celera Genomics Group., and others helped pioneer the field of genetic research in which human genome was mapped and scientists embarked on researching links between genes and human characteristics and disease.
It was believed that the research would lead to cures for all kinds of ailments, but the therapeutic solutions have proved to be slow going. While other companies have had sporadic breakthroughs, neither Celera nor Human Genome Sciences have successfully developed any of their own drugs so far.
As well as cutting jobs Human Genome expects to pare expenses by consolidating facilities, it said.
It plans to concentrate this year and next on clinical trials for five products focused on oncology, immunology and infectious diseases, it said.
These projects include potential drugs to treat rheumatoid arthritis, cancer, chronic hepatitis C and HIV/AIDS. It plans to file an investigational new drug application for its HIV/AIDs treatment later this year. Its arthritis, cancer and hepatitis C drugs are at various trial stages, it said.
The company said it could enter agreements with other companies for the development of preclinical drug candidates outside of its current focus. It holds rights to several drugs in clinical trials at GlaxoSmithKline Plc, it said.
Haseltine, who helped the company raise about $2.8 billion in financing and led it through its initial public offering in 1993, said he intends to continue his scientific and not-for-profit activities.
He is the founder and president of the Society for Regenerative Medicine and the editor-in-chief of the online journal "E-Biomed: The Journal of Regenerative Medicine."
A Harvard-trained biophysicist, Haseltine has founded 7 biotechnology companies.
