2023-07-19 08:00:22 ET
FibroGen ( NASDAQ: FGEN ) announced Wednesday that the company has greenlighted a restructuring initiative that includes plans to reduce about 32% of its U.S. workforce and save $30M–$35M in annual expenses in the future.
"The company would like to extend its tremendous gratitude to these employees," FibroGen ( FGEN ) said in a regulatory filing, noting that 104 of its staff members will lose jobs as a result.
The plan approved on July 14 is expected to cause $13M–$15M in non-recurring charges, mainly due to severance payments, notice pay, and other expenses.
Most of these expenses will be incurred in Q3 of fiscal 2023, and the company expects to complete the majority of layoffs, including cash payments, before the end of Q1 of fiscal 2024.
FibroGen ( FGEN ) said that its liquidity position, comprising cash, cash equivalents, investments, and accounts receivables, will allow it to fund operations and capital expenditures into 2026.
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FibroGen to cut 32% of U.S. workforce in restructuring plan