MediGene's R&D quits USA for Germany
subsidiary to Germany, delighting those who lament the "brain
drain" of scientific talent flowing in the other direction
MediGene is relocating the entire research department of its US subsidiary to its German headquarters in Martinsried, Munich, to the delight of those who lament the so-called "brain drain" of scientific talent flowing in the other direction.
The restructuring measures will lead to a gradual reduction of approximately 30 employees at the site in San Diego, California by the end of the year. The US unit will focus its activities on clinical development and regulatory affairs, with a trimmed down staff of around 10 employees.
Research, process development and quality control for MediGene's Oncolytic Herpes simplex virus technology will be consolidated in Martinsried, Germany, following an initial technology transfer phase in the spring.
"The bundling of research activities at one location will substantially increase the efficiency of MediGene and lead to a considerable reduction in our costs," explained Peter Heinrich, MediGene's chief executive.
The company expects that the implementation of these measures will lead to a reduction of €5 million in annual expenses. This, together with the spin-off of its cardiology business in the first quarter of this year, will reduce annual expenses by a total of €11.5 million in fiscal 2004, said MediGene.
