Synta Pharmaceuticals cuts 90 jobs

Synta Pharmaceuticals Corp. of Lexington announced a workforce reduction of 90 positions, or 41% of its work force, so it can to operate with current cash reserves for roughly two more years without the need for additional equity financing. All of the 90 lost positions are in MA, a company spokesman said. The company said it will move forward with a head count of about 130 employees. Last month, the company suspended a late-stage study of its cancer-drug candidate elesclomol in melanoma patients because of safety concerns. The company's president & CEO said, "This restructuring is unfortunately a necessity in light of the results of our Phase 3 clinical trial of elesclomol in metastatic melanoma. I would like to express my gratitude for the contributions and commitment of the many outstanding employees who are impacted by the restructuring announced today. These decisions are never easy, & my heartfelt sympathies go out to these employees & their families. However, we needed to act now to ensure that Synta has the resources, independent of external financial conditions, to continue to advance our most promising pipeline compounds and research programs. These programs generated substantial interest among our scientific and medical collaborators, as well as potential pharmaceutical industry partners, and we share our collaborators' excitement for their future potential."