FRANKFURT, Germany (AP) — Shares of GPC Biotech, a German developer of anti-cancer drugs, jumped Monday after the company said it is restructuring the business to ''sharpen the company's focus on oncology clinical development efforts and to further reduce costs.''
The restructuring is mainly focused on the company's early stage research activities in Munich and will result in a reduction in the total work force of approximately 38 percent — or 38 employees, the company said in a statement. The remaining work force will be 14 in Munich and 49 in Princeton, New Jersey.
Shares in GPC biotech rose 8.7 percent to euro2.72 (US$4) in Frankfurt trading.
In addition, chief operating officer Elmar Maier and Sebastian Meier-Ewert, the chief scientific officer, two co-founders of GPC Biotech, are retiring from their positions, effective immediately
They will continue to act as advisers to the company.
''We have implemented a comprehensive strategic plan which includes a sharper focus on what we believe are our most promising oncology development programs and a further reduction of the company's cost structure, so that we have approximately three years of operating cash on hand,'' said chief executive Bernd Seizinger. ''This will give us additional flexibility, even under challenging market conditions.''