April 30, 2009 (FinancialWire) — ZymoGenetics, Inc. (NASDAQ: ZGEN) said it will reduce its workforce by around 32 percent, or 161 employees, as part of a corporate restructuring.

Company CEO Douglas E. Williams said, “We’re taking steps to reduce our costs, align our spending with our highest corporate priorities and conserve our financial resources.”

ZymoGenetics expects to realize an annual reduction in operating expenses of around $30 million beginning in the third quarter as a result of these actions.

The company said it will continue to build the market for its approved product, Recothrom Thrombin, while pursuing the research, development and commercialization of novel biologic therapeutics.

ZymoGenetics plans to discontinue ongoing research activities in oncology and focus future research efforts in immunology, which the company cites as its core strength.

In a statement, the company said it plans to give greater emphasis to collaborative transactions to facilitate the development and commercialization of ZymoGenetics’ product candidates, while “retaining significant rights to participate in downstream value generation.”

The company said it is reducing its internal product development infrastructure related to this shift in strategy, and will pursue increased outsourcing in the future. Headcount has been reduced in most areas of the company, with the greatest impact coming in research, manufacturing and other development-related functions, as well as administrative departments.

ZymoGenetics said it will record a charge in the second quarter of around $8.5 million for severance and other costs related to the workforce reduction.

Seattle-based ZymoGenetics develops and markets novel protein drugs, and has product candidates focused on cancer, autoimmune and viral diseases.

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