Cesca Therapeutics restructures, cuts 15 jobs
Cesca Therapeutics, an autologous cell-based regenerative medicine company, has undertaken a restructuring initiative geared toward reducing costs associated with its traditional cord blood banking business and further aligning available resources behind the company's clinical programs, including the phase III pivotal clinical trial for no option critical limb ischemia (CLI) patients, recently approved by the FDA.
The restructuring resulted in a reduction of approximately 15 positions in various functions. This action, combined with the elimination of a number of open positions that will not be back-filled, is expected to reduce annual operating costs primarily in the cord blood banking business by about $3.3 million. The company expects to incur a restructuring charge of about $245,000 in the current quarter of fiscal 2016, which includes one-time termination benefits principally comprised of severance payments.