Nabi splits into two units; cuts 5% staff

Nabi Pharmaceuticals will be responsible for the company's anti-smoking vaccine NicVAX, as well as its StaphVAX (Staphylococcus aureus​ Polysaccharide Conjugate Vaccine) programme, which could lead to a treatment for staph infections. "The creation of Nabi Pharmaceuticals is another critical step forward for Nabi as we get closer to successfully concluding our strategic alternatives process, supported by Banc of America Securities, and securing a partner for our NicVAX and StaphVAX programs,"​ said Dr. Leslie Hudson, Interim President and CEO of Nabi Biopharmaceuticals. The firm recently announced positive Phase IIb results of NicVAX - a vaccine to treat nicotine addiction and prevent smoking relapse - and expects to start Phase III pivotal trials soon. To support the creation of the new unit, the company will eliminate 33 positions in its Rockville, Maryland R&D facility - the equivalent of 5 per cent of its workforce. This reduction is expected to save nearly $3.3m (€2.4m) annually. This reshuffle of the Nabi's Rockville operations comes just a few weeks after the company reorganised its Boca Raton, Florida headquarters to create Nabi Biologics. Meanwhile, Florida-based Nabi said it is continuing to work with Banc of America Securities on strategic alternatives and is still considering the sale of all or a part of the company. Investment advisor Chapman Capital said last month that it supported the sale of the Biologics division.​ "Nabi has bifurcated itself into two strategic business units to facilitate the successful completion of its strategic alternatives process being overseen by Banc of America Securities, and has committed to reduce further its cost structure and cash burn,"​ said Robert Chapman, managing member of Chapman Capital. "These developments give Chapman Capital confidence that Nabi CEO Dr Leslie Hudson is a man of his word, with that word being 'execution' (walk) and not the formerly insuperable one of 'vision' (talk)."​