Agennix AG Axes 55 Percent of Jobs as Part of Restructuring
Planegg/Munich (Germany), Princeton, NJ and Houston, TX,
August 24, 2012 - Agennix AG (Frankfurt Stock Exchange: AGX) today announced a
restructuring that involves staff reductions of approximately 55 percent of the
Company's workforce. The restructuring is being implemented to conserve cash as
management determines the next strategic steps for the Company.
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. I would like to express my sincere appreciation to our
affected employees for their valuable contributions to Agennix. We are working
with our Supervisory Board to determine the Company's direction and will
provide an update in the near future."
The Company's 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 the completion of this
restructuring in November of this year, 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 to assist in the assessment of the
Company's strategic options.
Cash guidance
The Company indicated that 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. As of June 30, 2012, cash, cash equivalents, other current
financial assets and restricted cash totaled € 22.7 million.
About Agennix
Agennix AG is a publicly listed biopharmaceutical company
that is 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. The Company's most advanced investigational
agent is talactoferrin alfa, which is 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. Agennix's
registered seat is in Heidelberg, Germany. The Company has three sites of
operation: Planegg/Munich, Germany; Princeton, New Jersey and Houston, Texas.
For additional information, please visit the Agennix Web site at
www.agennix.com.
This press release contains forward-looking statements,
which express the current beliefs and expectations of the management of Agennix
AG, including statements about cash reach. Such statements are based on current
expectations and are subject to risks and uncertainties, many of which are
beyond our control, that could cause future results, performance or
achievements to differ significantly from those expressed or implied by such
forward-looking statements. Actual results could differ materially depending on
a number of factors, and we caution investors not to place undue reliance on
the forward-looking statements contained in this press release. The achievement
of positive results in early stage clinical studies does not ensure that later
stage clinical studies will be successful. There can be no guarantee that the
Company will have or be able to obtain the financial resources to conduct
additional studies with its product candidates or that it will be successful in
pursuing other business opportunities. Forward-looking statements speak only as
of the date on which they are made and Agennix undertakes no obligation to
update these forward-looking statements, even if new information becomes
available in the future.
Agennix® is a trademark of Agennix AG.
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