45 GTC cuts 45 workers, lines up retention bonuses for execs
Boston Business Journal - by Julie M. Donnelly and Craig M. Douglas
Struggling drug developer GTC Biotherapeutics Inc. plans to cut 45 employees, or a third of its entire workforce.
Meanwhile, GTC has lined up $270,000 in “retention” payments for its senior executive team if the individuals stay with the cash-strapped company beyond March 31. The cash payments also kick in if the executives in question are terminated before that date.
The named executives and potential retention payments are as follows:
Chairman and CEO Geoffrey F. Cox stands to receive $94,000
Chief Financial Officer John B. Green stands to receive $44,000
Harry M. Meade, head of GTC’s research and development, stands to receive $44,000
Richard Scotland, head of regulatory affairs, stands to receive $44,000
Daniel S. Woloshen, the company’s general counselstands to receive $44,000
GTC employed 154 people before Monday’s announced cuts. CEO Cox said in a statement that the move would save the company between $5 million and $6 million annually.
On Nov. 6, GTC said it will likely run out of cash before March 1 unless new revenue or financing opportunities arise before then. The Framingham, Mass.-based developer of drug therapies derived from animal proteins recently closed a $10 million financing round with LFB Biotechnologies that brought its total cash position to around $11.8 million.
GTC booked $749,000 in revenue in the third quarter, down from the $2.9 million generated a year earlier. The company’s net loss for the quarter was $5.1 million, compared with $6.1 million in 2008’s corresponding period.
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