A DRUGS company is cutting jobs after a US expansion hit the buffers.

Shield Therapeutics says it aims to carry out a “regrettable, significant reduction” to its workforce following what it describes as disappointing findings from a study into its Feraccru product.

The firm has not revealed how many workers will be affected.

Bosses say better results would have helped pave the way to take Feraccru, which is used to provide treatment for iron deficiency anaemia in patients with inflammatory bowel disease, into the US.

The product is already approved in Europe.

However, Carl Sterritt, chief executive, yesterday said the Gateshead-based business needs to take swift action to address its fortunes, confirming jobs are at risk.

He said: “We remain disappointed by the initial results of the Feraccru study.

“To maximise the options available, the firm is focused on taking positive actions to preserve cash (and) this is being primarily achieved through a significant reduction in headcount and promotional activities.

“This is a regrettable but necessary step.”