Berkeley’s Xoma Ltd. will cut 144 employees — 42 percent of its workforce — with most of the cuts coming in manufacturing.
The company, which will have 197 employees after the cuts are completed in the second quarter, said the move will save about $27 million annually. It will take a first-quarter charge of about $3 million for severance and other costs.
Xoma has made enough of XOMA-052, its anti-inflammatory treatment of Type 2 diabetes, for its studies and will maintain its pilot-scale manufacturing plant.
XOMA-052 has been seen by some as a potential once-a-month treatment for diabetes. It blocks interleukin-1 beta, a master signaling protein that triggers inflammatory pathways.
The monoclonal antibody drug candidate could start a Phase II study in the second quarter.
Xoma stock closed Thursday at 64 cents per share, well off its 52-week high of $3.03 and slightly above the low of 59 cents.
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