Benitec reduces costs, cuts workforce

MOUNTAIN VIEW, Calif.—RNAi-based therapeutics specialist Benitec announced it has initiated a cost-reduction plan within its U.S. subsidiary that it anticipates will let it preserve capital during a more aggressive drug development phase. Looking to save about $350,000 per month, the company has reduced its workforce by half and has introduced other cost-saving measures. The move comes as the company sought to develop its IP portfolio and drug development programs but found that it did not have sufficient cash reserves.

"While these cost reductions will somewhat slow our development timelines in the short-term, we have retained our core scientific team and have thus preserved the current value of our Hepatitis C and HIV drug development programs," said Sara Cunningham, Benitec CEO. "Given the tremendous excitement and investment in RNAi, from the pharmaceutical industry and through private and public equity, we will seek to capture the full value of our core assets creatively yet prudently."