AMPE - Ampio announces 55% reduction of staff as key development program ends
- Ampio Pharmaceuticals ( NYSE: AMPE ), a clinical-stage company focused on osteoarthritic pain, disclosed its plans to cut its staff count by more than 50% on Wednesday after a decision to end the development of a major clinical program targeted at conditions including COVID-19.
- Accordingly, 10 of the company’s current 18 employees will face termination by the end of this month, indicating ~55.5% of its staff count.
- The decision comes as the board decided to discontinue the development of its experimental drug Ampion as part of a review of strategic alternatives, Ampio ( AMPE ) said in a regulatory filing.
- “At this time, the Company is discontinuing development of Ampion for all indications and discontinuing most other development activities pending conclusion of the strategic alternatives process,” it wrote.
- In relation to the plan, Ampio ( AMPE ) expects to recognize up to $425K in 3Q 2022 to reflect one-off severance and termination benefits in cash. In addition, up to $355K will be recognized in 3Q – 4Q 2022 in connection with the retention and severance arrangements.
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Ampio announces 55% reduction of staff as key development program ends