Amicus Therapeutics' shares fall following move to end Shire partnership, cut jobs

Shares of biotechnology company Amicus Therapeutics Inc. fell Friday after the company said it ended a partnership with Shire PLC to jointly develop treatments for genetic disorders, while cutting jobs amid the resignation of its chief financial officer.

The stock fell 39 cents, or 9.3 percent, to $3.82 in midday trading. Shares have traded between $3.92 and $13.50 over the last 52 weeks.

On Thursday, Amicus said the companies "reached a mutual termination agreement" to end their collaboration on three drug candidates aimed at lysosomal storage disorders. The disorders include up to 40 rare, inherited metabolic conditions such as Fabry disease. Amicus regained exclusive worldwide rights to develop and sell Amigal, Plicera, and AT2220. Shire will pay Amicus $5.2 million as it ends the partnership.

Meanwhile, the company said Chief Financial Officer Jim Dentzer is leaving the company. Amicus is cutting about 20 percent of its work force, or about 26 jobs, while ending relationships with 17 contractors.

Lazard Capital Markets analyst William Tanner reaffirmed a "Hold" rating on the stock.

Late Thursday Amicus, headquartered in Cranbury, N.J., also reported a wider third-quarter loss. The company lost $13.4 million, or 59 cents per share, compared with a loss of $8.2 million, or 36 cents per share, a year prior. Revenue rose 34 percent to $4.9 million from $3.7 million.

Amicus is currently conducting a late-stage study on Amigal, an oral drug aimed at treating Fabry disease. Fabry disease is a disorder in which the body lacks the ability to store some fats, which can lead to strokes, heart disease and kidney problems.