GenVec Announces Reduction in Workforce
GAITHERSBURG, Md., Sept. 25, 2012 /PRNewswire via COMTEX/ -- GenVec, Inc. (GNVC)
announced today that it is lowering its operating costs to conserve capital
including eliminating 23 positions, or approximately 30% of its workforce.
"While it is a difficult decision to eliminate positions in our talented and
dedicated workforce, this move is necessary to ensure that our costs are more
closely aligned with our resources and business strategy," said Cynthia Collins,
GenVec's President and Chief Executive Officer. "Expenses are being reduced in
virtually all areas, but we have focused on limiting the impact on our
collaboration with Novartis to develop treatments for hearing loss and balance
disorders. We continue to believe that this important program has the potential
to be extremely valuable to our shareholders."
GenVec ended the second quarter of 2012 with approximately $20.9 million in cash,
cash equivalents, and short term investments. Approximately $0.66 million of
expenses are expected to be incurred in the third quarter of 2012 due to the
costs of reducing GenVec's workforce. "In response to reduced revenue
expectations for 2013, these cost reductions will allow us to fund our operations
through the third quarter of 2014 exclusive of milestones we are eligible to
receive under our collaboration with Novartis," said Douglas Swirsky, GenVec's
Senior Vice President and Chief Financial Officer. "GenVec remains focused on
advancing its technology and product opportunities through collaborations." |
