Peregrine reduced overall workforce by 20%, sees FY18 cost savings $3.7M-$4.3M
Peregrine Pharmaceuticals announced that it has reduced its overall workforce by 60 employees, or 20%, as part of its series of planned strategic actions to reduce costs and better position the company to achieve overall profitability while it pursues strategic options for its research and development assets. The company expects the workforce reductions to result in a net cost savings of between $3.7M-$4.3M in FY18 and more than $7M in reduced annualized operating expenses beginning in FY19. As part of the cost saving initiatives, the company reduced Peregrine's R&D personnel by 50% to 11 employees, with the remaining staff supporting potential strategic alternatives for its R&D assets while continuing to assist with collaborative trials, the antibody discovery platform, and the exosome program. Personnel supporting the Avid Bioservices CDMO business, a wholly owned subsidiary of Peregrine Pharmaceuticals, was reduced by 20% to 184 employees to align operations with the reduction in forecasted revenues. In addition, selling, general and administrative personnel was reduced by 8% to 49 employees as the company continues to pursue leaner support operations. The charge to earnings for these personnel reductions will be between $1.1M-$1.7M, all of which is expected to be incurred during Q2 of FY18. Last month, Peregrine announced that as part of its strategic review it intends to expand its board of directors to add new members with CDMO and biologics experience and to commence a search for a dedicated president to head its Avid CDMO business.