GTx to Lay Off 60 Percent of Staff

By Amos Maki

GTx's Oct. 1 SEC filing

Memphis-based GTx is laying off 60 percent of its employees, according to a filing with the U.S. Securities and Exchange Commission.

The company expects to complete the downsizing, which will impact 53 “non-executive employees,” by Oct. 31, according to an 8K filing with the SEC. That will leave about 35 people.

The company said affected employees will be eligible to receive “specified severance payments” based on level and years of service with the company, and the continuation of group health insurance coverage through Oct. 31, 2013.

GTx specializes in developing treatments for cancer and other medical conditions.

GTx was dealt a blow in August when enobosarm – a drug with the potential to prevent and treat muscle wasting in patients with cancer and other musculoskeletal wasting or muscle-loss conditions – missed critical, late-stage trial goals.

“The company is undertaking the workforce reduction to reduce its expenses and preserve capital while determining the appropriate path forward” for enobosarm, the company said in the filing.