LigoCyte Pharmaceuticals asks some employees to take pay cut

LigoCyte Pharmaceuticals Inc. asked some of its employees to take a mandatory cut in pay Thursday to help keep the company afloat during hard economic times.

By KAYLEY MENDENHALL, Chronicle Staff Writer

"It is a reflection of the economic environment we are in," said Mike McCue, CEO of LigoCyte. "It was a decision to preserve the long-term integrity of the company."

McCue declined to comment on the number of employees affected or the percentage of the payroll reduction.

The biotech company, located in the Advanced Technology Park on College Street, has about 30 employees and specializes in research and development of anti-inflammatory and infectious disease products.

In the past, LigoCyte has received large government contracts to study potential bioterrorist agents. For example, the company landed a $2.8 million deal with the U.S. Department of Defense beginning in June 2001 to study brucellosis and other potential viral assault weapons.

"That’s a big part of our work," McCue said of government contracts. "We haven’t seen an immediate slow down. We do expect in the middle part of next year we might see a slow down there."

He said the company, which is privately held, is still in generally good financial shape, but the economic issues that have confronted many business sectors are no different for the biotech industry.

"Times are definitely tighter. We’re seeing companies that are just doing what they can to ride out and be successful in the long run," said Alicia Bradshaw, executive director of the Gallatin Development Corp.

"It’s always disappointing to see companies you are thrilled about having in the community to have to go through these times," she said.

She maintained Bozeman’s economy has not been hit as hard as other areas in the country and said having a wide diversity of businesses will be key to the Gallatin Valley’s long-term economic success.

"We hope to come out of this and see our companies do well," Bradshaw said.

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