SOUTH SAN FRANCISCO, Calif., May 14 /PRNewswire-FirstCall/ -- VaxGen,
Inc. (OTC Bulletin Board: VXGN), a biopharmaceutical company, today
provided guidance on its expected monthly cash expenditures following the
most recent restructuring undertaken on April 9, 2008. VaxGen expects that
its average monthly cash expenditures going forward are unlikely to exceed
$1 million, made up of the following categories:
* Costs related to the Company's real estate and facility, estimated at
32% of monthly expenditures.
* Costs related to maintaining public company status, including
professional fees, at approximately 32% of monthly expenditures.
* Costs related to the company's six remaining permanent staff and
temporary support, at approximately 21% of monthly expenditures.
* Interest payments associated with the outstanding convertible debt at
approximately 15% of monthly expenditures.
"With the completion of the most recent reduction in force, we have concluded those significant cost-reduction measures that are under the Company's sole control," said James P. Panek, VaxGen President and CEO. "While we continue to explore every avenue to reduce costs, a further significant reduction will be a function of the resolution of our efforts to sell the manufacturing plant and assign the associated lease. We are in discussions with parties interested in the plant, but cannot at this point provide assurance that a transaction will result."
VaxGen further announced today the filing of its financial results for
the quarter ending March 31, 2008 on Form 10-Q with the Securities and
Exchange Commission. These results reflect a number of significant impacts
consequent to the termination of the proposed merger with Raven
biotechnologies as follows:
* Consistent with SFAS 144, "Accounting for the Impairment and Disposal of
Long-Lived Assets" the property and equipment related to VaxGen's
|SOURCE VaxGen, Inc.|
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