Dec 9 2009
Unigene Laboratories, Inc. (OTCBB:UGNE) (http://www.unigene.com)
has announced a restructuring plan that includes a reduction in
workforce to improve operational efficiencies and to better match
resources with market demand and the Company’s strategic objectives.
Under the comprehensive plan, Unigene will continue Fortical®
production and will maintain all of its core programs and partnered
activities while decreasing operating expenses by approximately $9-10
million for 2010. Since Unigene currently maintains an adequate
inventory of calcitonin and enzyme to support Fortical®, the
Company will temporarily suspend manufacturing of those materials at its
Boonton facility. However, the Company will maintain the cGMP status of
the facility and the ability to manufacture peptides at that location.
Implementation of the plan will result in an immediate company-wide
workforce reduction of approximately one-third. The plan further
provides for salary reductions at all levels, including senior
management, and other cost savings.
“This decision will allow us to better focus on our current needs while
operating more efficiently and significantly reducing our burn rate,”
said Warren P. Levy, President and Chief Executive Officer of Unigene.
“We believe that these steps will enable us to meet the challenging
demands of the current economic environment, thereby better positioning
us to meet our corporate goals and increase shareholder value.”
Source:
Unigene Laboratories, Inc.