AVEO Oncology restructuring and job cuts as tivozanib future in RCC in doubt

Following a recent negative opinion on its lead product candidate from a Food and Drug Administration advisory panel in the treatment of renal cell carcinoma (The Pharma Letter May 3), US biotech firm AVEO Oncology (Nasdaq: AVEO) has announced a strategic restructuring that will refocus the company’s efforts and resources on the ongoing clinical development of tivozanib in colorectal and breast cancer, as well as advancing key pipeline and preclinical assets.

The company said it will cut about 140 jobs (around 62% of its workforce) in the restructuring expected to save $190 million in the next two years. This restructuring is expected to extend the company’s cash runway for at least two years, which is beyond anticipated data read-outs from ongoing trials of tivozanib and AV-203.

“As a result of the recent ODAC meeting, we believe that it is likely that tivozanib will not receive FDA approval for renal cell carcinoma or RCC,” said William Slichenmyer, chief medical officer of AVEO, adding: “With the decision of our partner, Astellas, not to proceed with a European filing for tivozanib or financially support future clinical trials in RCC, AVEO has no plans at this time to pursue tivozanib development in RCC.”