GTC Restructures, Lays Off 50

GTC Biotherapeutics received $7 million in debt financing from strategic partner LFB Biotechnologies SAS. The financing was contingent on a restructuring of GTC’s operations; the company will eliminate approximately 30 full-time positions at its headquarters and an additional 20 positions at its farm facility. In addition, chief executive officer, president and chairman Geoffrey Cox and several other members of the current senior management team will exit GTC. Board member William Heiden has been named to all three top roles.

Mr. Heiden remarked, “Looking ahead, GTC will concentrate its efforts on achieving three key goals: to progress the Factor VIIa program into first-in-man studies, currently expected to begin late this year, to improve the financial performance of ATryn, the first product developed, approved (in the U.S. and EU) and manufactured using GTC’s transgenic technology, and to leverage the power of our transgenic platform to advance additional protein therapeutic candidates, especially in the area of ‘bio-similar’ product candidates.”

He added, “I believe that GTC is uniquely positioned to deliver improved versions of existing biotherapies, at lower cost and with greater manufacturing flexibility than other production systems. In summary, narrowing our focus and reducing the size of operations will significantly decrease our on-going financial resource requirements and enhance our ability to achieve our longer term strategic goals.”

Christian Béchon, president and chief executive officer of LFB, commented, “This investment is a demonstration of our continuing commitment to the GTC transgenic technology platform and our joint programs, including Factor VIIa. I would also like to extend my sincere thanks to Geoff Cox and the other departing GTC employees for all of their efforts on behalf of the Company. I am looking forward to a bright future at GTC under the leadership of GTC’s new CEO, Mr. William Heiden. I have known Bill for several years and have great confidence in his ability to successfully lead GTC into its next chapter.”

Mr. Heiden most recently served as president and chief executive officer of Elixir Pharmaceuticals, and prior to that was president and chief operating officer of Praecis, which was acquired by GSK.