Tocagen: Plans to trim workforce after brain cancer trial failure
03/10/2019 13:30
** Drug developer TOCA.O announces restructuring plan; to
reduce workforce by ~65%, resulting in 30 remaining full-time
employees by year-end
** Brokerage Chardan says the restructuring is not
unexpected given TOCA's pipeline uncertainty and previously
disclosed plans to conduct an operational review after its
late-stage brain cancer trial failure last month urn:newsml:reuters.com:*:nL3N2632DS
** Co estimates a one-time charge of ~$1 mln for employee
severance and other related termination benefits
** Savings from restructuring to be used to complete the
analysis of data from its brain cancer trial and present results
at conference in Nov.
** Company's shares drop 2% to 57 cents premarket
** Up to Wednesday's close, stock had fallen ~93% this year
(Reporting by Saumya Sibi Joseph in Bengaluru)
((saumya.joseph@thomsonreuters.com))