Techniclone Says Funds Dwindling

Techniclone Corp., a struggling developer of experimental cancer treatments, warned Tuesday that it could run out of money as early as next month.

The Tustin company, which has lost about $74 million over the last seven years, said it plans to cut its work force by 50% in coming weeks. The company would not say how many employees it has. Its work force totaled about 40 last year.

The company also said it will “substantially reduce” all business other than clinical trials and related support functions to hold down expenses and conserve financial resources.

The biopharmaceutical company said it is in preliminary discussions to secure additional financing.

But if it can’t obtain additional sources of funding, complete a business combination or borrow more funds because of its sagging stock price, Techniclone will be unable to fund operations by November, the company said in a release.

If the company is able to partially access its equity line, it anticipates that will fund operations for three months.

The stock slumped Tuesday to a 52-week low of 28 cents a share before closing at 41 cents, down 19 cents, on the Nasdaq SmallCap market. So far this year, the shares have lost nearly 63% of their value. A total of 3.95 million shares changed hands Tuesday, more than eight times the average daily volume over the last three months.

Techniclone also said Tuesday that it has hired U.S. Bancorp Piper Jaffray, an investment banking firm, to help pursue strategic alternatives.