THERAMetrics Undergoes Radical Restructuring in Effort to Avoid Bankruptcy

October 8, 2015
By Alex Keown, BioSpace.com Breaking News Staff

STANS, Switzerland – Swiss-based Therametrics holding AG, a contract research and development pharmaceutical company, is undertaking what it calls a “new and radical” restructuring plan in an effort to halt “significant cash losses,” the company announced this morning.

“In view of the continued deterioration of liquidity, together with doubts about the ability to achieve the additional measures … it is doubtful that the company will be able to support the liquidity needs of its group companies over a sustained period of time,” Therametrics said in a statement.

There is no word on how this will impact a deal struck last month between THERAMetrics and North Carolina-based Cloud Pharmaceuticals, Inc. Last month the two companies struck a deal to focus on the development of therapeutics for orphan central nervous system (CNS) diseases and other indications. The two companies will initially look at Huntington’s disease amyotrophic lateral sclerosis (ALS), progressive supranuclear palsy (PSP), and frontotemporal dementia (FTD). Under terms of the deal, Cloud Pharmaceuticals will manage early drug development efforts of lead compounds and the Therametrics contract research organization business unit will manage clinical research.

Likewise, it is unknown how an August deal between Therametrics and Grunenthal GmbH, a family-owned pharmaceutical company, to use Therametrics’ DRR2.0 technology for drug repurposing and repositioning, target identification, and safety evaluation will be impacted.

Without undertaking a new approach, the Therametrics executive team said it could be forced into bankruptcy. The plan, approved by the Therametrics board of directors, includes layoffs, the sale of real estate and the “consolidation of historically decentralized functions,” the company said. Additionally, Therametrics’ executives are being asked to approach investors to secure additional financing. The board of directors set a deadline of Oct. 16 to secure the financial commitments, the company said.

Therametrics’ , which is traded on the SIX Swiss Exchange under the symbol TMX, has lost more than 30 percent of its value since the restructuring announcement.

Tim Snyder, chief financial officer of Therametrics, said management has been active in contacting potential investors and “is optimistic about the chances of quickly raising the cash needed to fund this new restructuring plan and our continuing operations.”

Therametrics said if the funds are not raised, then the board will have to consider options including winding down operations and bankruptcy.

At the end of September, the company announced changes to its executive leadership. Marco Grenningloh, the company’s chief operating officer, took over the duties of coordinating the global CRO business development effort after Luigi Godi resigned his position “to pursue other interests.”