Delcath Systems announces reorganization, 33% of workforce cut
Delcath Systems, a specialty pharmaceutical and medical device company focused on oncology, has completed a strategic reorganization, eliminating 21 positions, or approximately 33% of its global workforce. The company expects this reorganization, in conjunction with other cost saving measures, to significantly lower cash utilization.
For its fiscal third quarter, Delcath Systems expects cash utilization to be between $7 and $8 million, as compared to its previous guidance of $9 to $10 million for the period. For its fiscal fourth quarter, the company currently expects cash utilization to be at the lower end of its previous guidance of $6 to $8 million. The company expects to reduce annual operating costs by approximately $10 million and believes these actions will help initiate the strategic objectives currently under evaluation. Most of the savings are expected to come from marketing, administrative expenses and R&D. As of Sept. 30, the cash and cash equivalents of the company are estimated at approximately $28 million.