Delcath to Cut Workforce by 21% This Year, Looking to Move NYC Operations to New Jersey
Delcath Systems, Inc. (NASDAQ: DCTH) today announced that as a part of the Company's continued effort to increase efficiencies and reduce cash utilization, it has implemented a program designed to decrease the Company's 2013 quarterly operating cash utilization to between $9 million and $10 million from the previously communicated range of $9 million to $12 million, beginning in the second half of 2013. Combined with the Company's approximate $42 million cash position at March 31, 2013, the program is expected to provide Delcath with sufficient resources for at least the next 12 months as the Company pursues three key objectives: U.S. FDA approval for Melblez^TM Kit (Melblez (melphalan) for Injection for use with the Delcath Hepatic Delivery System), European commercialization of CHEMOSAT^® Hepatic Delivery System for melphalan hydrochloride, and ongoing clinical development focused on label expansion.
To achieve the program's goals, Delcath has expanded workforce restructuring actions which have reduced the Company's workforce by approximately 21 percent this year. In addition, the actions announced today are expected to continue the Company's reduction of expenses incurred with outside consultants. To increase efficiency, the Company will be changing the address of its headquarters to its Queensbury, NY facilities, and is pursuing a relocation project to move its New York City operations to a more cost effective satellite office in New Jersey.
The expanded efficiency program includes the promotion of Jennifer Simpson, Ph.D., MSN, CRNP to the newly created position of Executive Vice President, Global Head of Business Operations, effective immediately. Dr. Simpson joined Delcath in March 2012 as Executive Vice President, Global Marketing, bringing an extensive background in pharmaceutical and oncology marketing, including responsibility for global product development in the oncology sector. In her new capacity, Dr. Simpson will have responsibility for global sales, marketing, regulatory, quality, clinical development, and medical affairs activities. The efficiency program includes the elimination of two senior level positions; global sales, the responsibilities of which have been absorbed by Dr. Simpson and business development, the responsibilities of which have been absorbed by Delcath's President & CEO, Eamonn Hobbs, and CFO, Graham Miao.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.