ThermoGenesis reorganizes, eliminates 11 positions
ThermoGenesis, a developer and manufacturer of automated blood and bone marrow processing systems, has announced a reorganization initiative designed to better align resources with its expected cord blood revenue streams, increase its internal clinical resource capabilities and provide greater focus on new application development to improve the company's market competitiveness and to speed AXP AutoXpress Platform (AXP) adoption in developed and emerging markets.
The company expects these changes will enable it to generate cash from its cord blood business in the coming two to three quarters, in addition to realigning its professional resources to support its rapid expansion into the regenerative medicine space.
"One of our primary objectives is to continue to invest in our AXP Platform and clinical resources needed to further expand the system's clinical intelligence and technological functionality. In this way, we can better meet the evolving cell processing needs of our cord blood customers and expand its use into our vascular and orthopedic cell therapy initiatives," said Matthew Plavan, CEO of ThermoGenesis.
As a result of eliminating 11 positions in connection with the reorganization, coupled with other targeted savings in operating costs, the company expects to realize approximately $1.5 million in annual expense savings. One-time severance costs of approximately $210,000 are expected over the next two quarters.