Chiron Cuts Back 2 Research Programs

Chiron Corp. said it plans to cut spending for two early-stage research programs involving vaccines and gene therapy so it can meet a target of increasing earnings per share by 25% next year. Emeryville, Calif.-based Chiron, one of the world’s largest biotechnology companies, said the two programs employ about 90 people. Those employees, most of them in California, may not lose their jobs because Chiron will look to partnerships or spinoffs to keep the programs running. The move will help keep spending on research and development flat next year at about $290 million, a spokeswoman said. Chiron Chief Executive Sean Lance is trying to focus Chiron’s efforts on programs most likely to lead to development of products with potential to be blockbusters. The company, 44% owned by Swiss drug maker Novartis, has long been criticized for its inability to cash in on its research. Separately, Chiron said its board authorized the repurchase of up to 4 million of the company’s shares. Chiron shares fell 6 cents to close at $28.25 on Nasdaq.