Transcept Pharmaceuticals, a specialty pharmaceutical company focused on development and commercialization of proprietary products that address important therapeutic needs in neuroscience, has announced plans to reduce expenses through a reduction in force and a restructuring of its board of directors. Transcept plans to adopt these changes to conserve cash while it evaluates strategies to maximize value for shareholders.

Transcept plans to eliminate six employee positions, or approximately 43% of its workforce. The majority of these positions will be eliminated by year-end, with certain employees retained through a transition into early 2014. The cut will reduce current annualized payroll and benefit expenses by approximately $865,000. Transcept will have eight remaining employees.

Transcept also will restructure its board of directors. Glenn A. Oclassen, the company's president and CEO, will assume the role of chairman and CEO. Current chairman G. Kirk Raab will move to lead director. Christopher B. Ehrlich, a longstanding member of the Transcept board, will resign from the board effective at the end of December. This restructuring will save the company approximately $180,000 on an annualized basis, or 36% of its board governance costs.