VALENTIS TO LAY OFF 60 PERCENT OF STAFF

Biotechnology firm Valentis is liquidating assets and will lay off more than half its staff, the company announced.

California-based Valentis said it will sell "certain biomanufacturing rights" and intellectual property rights to Cobra Biologics, and will reduce staff by 60 percent effective Aug. 18. The company said it anticipates additional "step-wise" employee reductions in the future.

Valentis also said that Alan Mendelson has resigned from the company's board of directors to instead serve as company counsel. Mendelson is with law firm Latham & Watkins.

The announcement comes a month after the company ceased development of a drug to treat peripheral arterial disease. On July 11, Valentis President, CEO and Chairman Benjamin McGraw announced that, based on disappointing clinical trial data for its drug candidate VLTS 934, "the company has no plans for further development of the product and is assessing strategic opportunities, which include the sale or merger of the business, the sale of certain assets or other actions."