Biodel Announces Restructuring Update
DANBURY, CT--(Marketwired - January 29, 2016) - Biodel Inc. (BIOD) today announced updates regarding the company’s ongoing strategy to preserve its assets and maximize shareholder value.
In January 2016, the company completed a reduction in force affecting 15 non-executive employees. As a result, Biodel estimates that it will incur one-time cash severance payments of approximately $1.3 million. Furthermore, the company’s average operating cash burn will be reduced from approximately $4.5 million per quarter to approximately $1.1 million per quarter. The January 2016 reduction in force is in addition to the ten-person reduction in force the company completed in October 2015. As of December 31, 2015, the company had cash of approximately $37 million. The company will announce its financial results for the first fiscal quarter of 2016 in February 2016.
The 2016 reduction in force is intended to preserve the company’s cash while it assesses its options to maximize shareholder value. The company continues to evaluate its strategic alternatives, as first announced in December 2015. To assist in this process, the company’s board of directors has established a special committee of the board and has retained Ladenburg Thalmann & Co. as an advisor to the company.
The board of directors has also appointed the company’s chief financial officer, Gary G. Gemignani, as interim chief executive officer effective January 26, 2016, with primary responsibility of managing the review of strategic alternatives. Dr. Errol de Souza stepped-down from his role as chief executive officer effective the same date.
Mr. Gemignani joined Biodel as CFO in 2014 with over twenty-five years of experience in the life sciences industry and has held senior management positions at Wyeth, Novartis, Gentium, and Coronado Biosciences. Mr. Gemignani continues in his role as chief financial officer of the company.
