of senior management are to receive a compensation package that
includes stock options. It is anticipated that certain other
employees of the Company (both management and non-management) will
take salary reductions as well or other means to reduce our
- Reductions in headcount: Headcount has been decreased 18%, from 34 to
- Board Reductions: The Board of Directors is being reduced from 10 to
7 members. In addition, the 6 remaining non-executive directors are
taking a 50% reduction in their cash compensation and these directors
will receive stock options for this reduction. Retiring from the
board are: Richard DeVries, Walter Moos and Keith Schilit.
- Non-personnel expenses: several non-personnel related expenses have
been reduced, such as moving the Company's San Diego office to a
small executive suite and across the board reductions of various
other operational expenses. Cost reduction activities are ongoing.
These initiatives will reduce the Company's cash burn rate by an estimated $1.5 million annually and we anticipate additional reductions as a result of the above initiatives. The Company expects to operate with an annual burn rate of approximately $8 million or less (reduced from previously expected range of $9 million to $10 million).
MIGENIX is committed to advancing therapy, improving health, and
enriching life by developing and commercializing drugs primarily in the
area of infectious diseases. The Company's programs include drug candidates
for: the prevention of catheter-related infections (end of Phase III), the
treatment of chronic hepatitis C infections (Phase II and preclinical), the
treatment of dermatological diseases (end of Phase II), the treatment of
serious gram posi
|SOURCE MIGENIX Inc.|
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