Montreal biopharmaceutical Theratechnologies is once again reducing the size of its research and development activities, leading to the elimination of some 25 positions.
Big boss Paul Lévesque indicates that the decision is part of the objective of building a profitable company and providing returns to shareholders.
Management specifies in particular that all future clinical research activities in oncology will be carried out in partnerships.
Management expects the restructuring announced Tuesday to achieve recurring annual savings of approximately US$3.5 million.
A restructuring charge of approximately US$1.5 million will be recognized in the year-end results.
Management had already announced in July a rationalization of R&D functions at Theratechnologies. It was then calculated that the rationalization would result in annualized cost reductions of $5.5 million.
When publishing the company’s most recent quarterly financial performance last month, management revised its revenue forecasts downward for the year.
Theratechnologies essentially collects revenue from two products sold in the United States. One treats human immunodeficiency virus (HIV) and the other treats a condition associated with it.
The company’s activities are still loss-making although the loss generated in the last quarter was considerably less than in the same period a year earlier.
Theratechnologies’ current stock price on the Toronto Stock Exchange gives the company a value of less than $50 million. Theratechnologies stock is also listed on the NASDAQ.
A share consolidation was also carried out this summer with the sole aim of increasing the price of the stock so that the company once again complies with the requirements of the NASDAQ and can thus maintain its listing on this American stock exchange.