Tokai Pharmaceuticals announces reduction in force
Reduction is designed to reduce operating expenses while the company conducts a comprehensive evaluation of strategic options for galeterone and its pipeline.
Tokai Pharmaceuticals, a biopharmaceutical company focused on developing and commercializing innovative therapies for prostate cancer and other hormonally driven diseases, has announced that it is reducing its workforce by approximately 60%, to a total of 10 full-time equivalent employees, under a plan expected to be largely completed by the end of the third quarter of 2016. This workforce reduction is designed to reduce operating expenses while the company conducts a comprehensive evaluation of strategic options for galeterone and its pipeline. Affected employees are being offered severance and outplacement assistance.
Tokai expects the reduction in force to result in approximately $4.2 million in reduced annualized operating expenses once the plan is fully implemented. The company also expects to incur a charge in the third quarter of 2016 of approximately $1.3 million related to the reduction, including severance, benefits and related costs.
“A reduction in force is a very difficult yet necessary step in light of the recent discontinuation of the ARMOR3-SV trial of galeterone in mCRPC,” said Jodie Morrison, President and Chief Executive Officer of Tokai. “I would like to personally express my appreciation to each of the employees impacted by this decision for their commitment to the development of galeterone, as well as for their meaningful contributions to a program that has expanded the dialogue among the medical and patient communities about AR-V7 and advanced prostate cancer treatment options.”
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