SYGNIS Pharma AG announces strategic restructuring
SYGNIS Pharma AG announced a comprehensive, strategic restructure of the company, which will include significant personnel and cost reductions. The process has been approved by the Supervisory Board and will be executed immediately.
The purpose of the restructuring is to reduce SYGNIS’ long-term cost-structure to maintain a strategic focus on the Company’s current projects, including the clinical development of its lead compound AX200 for the treatment of acute stroke, which is currently in a phase II efficacy trial (AXIS 2).
The total number of employees will be reduced from 51 to 32 (an equivalent of 21 Full Time Employees). The core pre-clinical and clinical development teams will remain in place to complete ongoing AX200 development work as well as research on the KIBRA pathway. Relating to the restructuring, the Company expects a one-time total expense of up to EUR 0.5 million, which will occur in full in the fiscal year 2010/11. Additional non-cash related expenses of up to EUR 2.5 million could occur with regard to an impairment of intangible assets.
With the reduced cost-base and the current liquidity it is expected that SYGNIS will have sufficient funds to support the completion of the ongoing phase II efficacy study for AX200. In addition, the Company has access to an equity-line by Yorkville Advisors, which will further extend SYGNIS’ financial runway. The Board believes the new structure of the Company should position it more favourably for potential future strategic transactions.
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