We've updated our Privacy Policy to make it clearer how we use your personal data.

We use cookies to provide you with a better experience. You can read our Cookie Policy here.

Advertisement
Benitec Implements Cost Reductions
News

Benitec Implements Cost Reductions

Benitec Implements Cost Reductions
News

Benitec Implements Cost Reductions

Read time:
 

Want a FREE PDF version of This News Story?

Complete the form below and we will email you a PDF version of "Benitec Implements Cost Reductions"

First Name*
Last Name*
Email Address*
Country*
Company Type*
Job Function*
Would you like to receive further email communication from Technology Networks?

Technology Networks Ltd. needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy

Benitec Ltd. has announced that it has implemented a cost reduction plan within its US subsidiary in order to preserve capital while continuing to progress its drug development programs.

Benitec has reduced its workforce by 50%, anticipating a nearly US$100,000 monthly savings.

The Company has implemented further expense reductions associated with its drug development programs as well as significantly reducing its facilities costs, resulting in an additional US$250,000 monthly savings.

The Company expects these cost reduction measures to result in a 50% decrease in monthly spending levels, representing approximately US$4 million on an annualized basis.

Peter Francis, Chairman of Benitec, stated, "The Directors recognize that Benitec does not currently have the required levels of capital to continue funding a US drug development business at the rate of expenditure to date."

"However, we believe that Benitec has two primary value drivers: its robust intellectual property portfolio and its drug development programs, and we will seek to develop these two assets, whether separately or together while seeking to preserve Benitec’s cash reserves, in the best interests of our shareholders."

Sara Cunningham, Benitec CEO, stated, "While these cost reductions will somewhat slow our development timelines in the short-term, we have retained our core scientific team and have thus preserved the current value of our Hepatitis C and HIV drug development programs."

"Given the tremendous excitement and investment in RNAi, from the pharmaceutical industry and through private and public equity, we will seek to capture the full value of our core assets creatively yet prudently."

Advertisement