Techniclone Cuts 18 Jobs in Wake of Stock’s Slump

Techniclone Inc., a struggling developer of experimental cancer treatments, said Thursday it has eliminated 18 positions--30% of its work force--and continues to realign its senior managers.

The company said Thursday that the job cuts, which reduce the company’s work force to 38, affect the entire operation. “Every area got tapped a little bit,” said Thomas R. Testman, a consultant serving temporarily as the company’s chief executive.

Kenneth L. Berger, formerly vice president of regulatory and scientific affairs, was the highest-ranking executive to depart. Berger resigned.

The company also promoted Elizabeth Gorbett-Frost to chief financial officer and named David Allen an executive vice president in charge of developing drugs that use radioactive isotopes.

Gorbett-Frost, who previously served as vice president of finance and administration, replaces William Moding in the top financial job. Moding, a vice president, is assuming responsibility for company operations and administration and retains the role of corporate secretary.

Separately, the company promoted Jamie Oliver to vice president of clinical affairs. His new responsibilities include research and development and regulatory affairs.

Techniclone, like most biotech companies, depends on steady sources of financing for drug development. But a huge drop in its stock price--from $6 a share a little more than a year ago to about 50 cents a share--is hindering its ability to obtain financing.

The company has blamed the stock’s deterioration in part on recent conversions of its preferred stock into common stock at discounted prices, diluting the stock.

Earlier this week, the company reported it has enough funds to carry it through June. Its board of directors continues to search for a permanent replacement for its former chief executive Lon H. Stone, who remains chairman.