Agennix announces corporate restructuring
Agennix has announced a restructuring that involves staff reductions of approximately 55% of the company's workforce. The restructuring is being implemented to conserve cash as management determines the company’s next strategic steps.
Torsten Hombeck, Ph.D., chief financial officer and spokesperson of the management board, said, "Our immediate objective of conserving cash has sadly necessitated significant staff reductions in both Germany and the U.S. We are working with our supervisory board to determine the company's direction and will provide an update in the near future."
The restructuring plan involves a total staff reduction of 37 employees, which will take place in two tranches. The Houston site will be shut down as a result of the restructuring. Following completion in November, the company will have a total of 30 employees, who are being retained to work on certain ongoing activities related to the talactoferrin program, as well as assist in the assessment of the company's strategic options.
Agennix said it expects to have sufficient cash to fund operations into the first quarter of 2013. The one-time cost of this restructuring and expenses related to terminating various activities and operations will in the near term offset anticipated longer-term savings from these cuts.
Agennix is a publicly listed biopharmaceutical company focused on the development of novel therapies that have the potential to substantially lengthen and improve the lives of critically ill patients in areas of major unmet medical need. Its most advanced investigational agent is talactoferrin alfa, currently being studied for the treatment of non-small cell lung cancer. Other clinical development programs include RGB-286638, a multi-targeted kinase inhibitor in phase I testing for cancer, and a topical gel form of talactoferrin for diabetic foot ulcers. The company has operations in Planegg/Munich, Germany; Princeton, New Jersey and Houston, Texas.