Corixa to Cut Jobs After Drug Approval Delay

Corixa Corp. said it would cut its work force and take a charge against earnings after the Food and Drug Administration requested more data on an experimental drug that uses a cloned antibody to deliver radiation directly to cancer tumors. The request for additional safety and other data on Bexxar, considered the most important drug in the company’s pipeline, adds at least a year to the timeline for approval, analysts said. Seattle-based Corixa said that as a result of the delay, it plans a 10% to 15% reduction in research and administrative staff, mostly in California. The cuts will bring the company’s work force down to about 512. The staff cuts will result in a first-quarter restructuring charge of about $1.5 million and could result in annual cost savings of about $6 million. Additional job cuts may be required, the company said. San Diego-based IDEC Pharmaceuticals Corp. also filed late last year for FDA approval of its own targeted radiation drug, Zevalin. IDEC is waiting to hear whether its Zevalin application will be scheduled for review at the FDA advisory panel meeting in June, a spokesman said. Shares of Corixa fell more than 20% before recovering somewhat to close off $1.56, or 14%, at $9.50 on Nasdaq. IDEC shares rose $4.38 to close at $52.50, also on Nasdaq.