Idenix Pharmceuticals laying off 100

Biotechnology company Idenix Pharmaceuticals Inc. said today that it is cutting 100 positions and amending an agreement with Novartis to stop all activities dealing with the hepatitis B drug Tyzeka.

Novartis will have full responsibility for all activities related to the drug, which is called Sebivo in Europe. Idenix will still receive royalty payments on sales. Novartis owns 56 percent of Idenix.

The job cuts will leave the company with about 200 employees. The jobs being cut mostly support the development and sale of the hepatitis B drug. The move is expected to reduce the company's cash burn rate by 40 percent to 50 percent.

The company expects a charge between $5 million and $10 million for employee severance and asset writeoffs. But, the layoffs will result in savings between $40 million and $45 million on an annual basis, Idenix said.

In July, the Food and Drug Administration halted development of the company's hepatitis C drug candidate valopicitabine because results did not show enough benefit based on the observed risks.

Shares of Idenix fell 14 cents, or 14.6 percent, to $2.89 in morning trading. The stock has traded between $2.29 and $10.83 over the last 52 weeks. (AP)