The company is closing down its drug discovery business in its entirety, slashing its employee numbers from 48 to 23 as it moves from a cash-burning to a revenue-generating business model.

The company is looking for collaborative opportunities within the pharmaceutical and biotechnology sectors for its technologies, including SkelGen, and the algorithm-based platform currently used by Roche in its drug discovery programs.

One of the effects of the shift in direction is a change in De Novo's management. Steve Beasley, previously chief operating officer, moves to the position of chief business officer and Richard Scott is appointed director of technology development.

De Novo had been working on a series of compounds that inhibit beta secretase (BACE), a drug target in Alzheimer's disease, and will now offer them up as licensing opportunities.

Chief executive Bart Wuurman, who joined the company from Antisoma last month, has been the driving force behind the change in focus.