PLANEGG, GERMANY and MUNICH, GERMANY and PRINCETON, NJ and HOUSTON, TX--(Marketwire - Aug 24, 2012) - Agennix AG (FRANKFURT: AGX) (XETRA: 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.
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 EUR 22.7 million.
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.