OctoPlus announces further efficiency measures
OctoPlus N.V. announced that it will reduce its work force by approximately 25% while retaining its revenue guidance for the year. Reductions will occur across all areas of the Company and have taken place in consultation with the Company's Works Council. The reduced headcount will not impact OctoPlus' targeted revenues for 2009: the Company maintains its revenue guidance of € 19 million.
2009 has seen OctoPlus successfully change its strategy to a drug delivery service based business. This was illustrated by a number of contract announcements over the past months showing both validation and international adoption of OctoPlus' controlled release technology and which in turn will lead to ongoing short term revenues and long term potential royalties.
Simon Sturge, CEO of OctoPlus comments: "These efficiency measures will enable us to operate more competitively and will help to broaden our client base, which will diversify our revenue sources in both drug delivery and pharmaceutical services, aside from our current revenue stream from Locteron. These steps will enhance our ability to build a profitable service organisation although these reorganizational changes will prevent us from being operationally cash flow positive in the second half of the year. The measures taken today will streamline the company going forward."
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