Aquinox fallls after disclosing restructuring plan, charge
Aquinox disclosed in a filing last night, that on July 3, the Compensation Committee of the Board of Directors of Aquinox Pharmaceuticals, approved a restructuring plan to reduce operating costs and better align the company's workforce with the needs of its business following the June 27 announcement that its Phase 3 LEADERSHIP 301 clinical trial evaluating once-daily, oral rosiptor for the treatment of interstitial cystitis/bladder pain syndrome failed to meet its primary endpoint. The company has halted all further development activities with rosiptor. Under this plan, the company reduced its workforce by 30 employees and closed its office in San Bruno, California. Affected employees are eligible to receive severance payments and outplacement services. Employee severance benefits are contingent upon an affected employee's execution of a separation agreement, which includes a general release of claims against the company. In connection with the restructuring, the company estimates that it will incur aggregate restructuring charges of approximately $2.5M related to one-time termination severance payments and other employee-related costs and the shut-down of its San Bruno office. The majority of the cash payments related to the personnel-related restructuring charges will be paid during the third quarter of 2018, with the remainder to be paid during the fourth quarter of 2018. The charges that the Company expects to incur in connection with the workforce reduction is subject to a number of assumptions, and actual results may differ materially. The company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the workforce reduction. Shares of Aquinox are down 5.5% in afternoon trading.