NeoseTechnologies said it willreduce its staff by 35% in connection with the discontinuation of NE-180(GlycoPEGylated erythropoietin), its experimental erythropoiesis-stimulatingagent (ESA) for the treatment of anemia in patients with chronic kidney diseaseand cancer patients receiving chemotherapy. The company had intended to partnerthe Phase II compound to conduct a Phase III trial, but “safety concernsexpressed in recent quarters about marketed ESAs have not only impacted themarket potential for new ESAs, but also made it unlikely that a collaborativerelationship could be formed for the future development of NE-180 in areasonable time frame,” Neose CEO George Vergis, PhD, said in a statement. Thedecision allows Neose to forego $60-$80 million of incremental spending overthe next two years. The firm said it will pay cash severance benefits of about$900,000, mostly in early 2008.