DepoTech Announces Resignation of President/CEO and Work Force Reduction
Business Wire - February 03, 1998 08:30
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%MANAGEMENT %CHANGES V%BW P%BW
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SAN DIEGO--(BUSINESS WIRE)--Feb. 3, 1998--DepoTech Corp. (NASDAQ:DEPO)
today announced that Edward L. Erickson has resigned as president and
chief executive officer of the company for personal reasons. John P.
Longenecker, Ph.D., the company's current senior vice president and
chief operating officer, has been appointed president and a member of
the board of directors. Fred A. Middleton, chairman of the board, will
assume the additional post of CEO. Stephen B. Howell, M.D., a founder
and board member, will become medical director. Together, these three
board members will form an executive committee responsible for the
strategy and management of the company. The company also announced a
reduction in its work force aimed at lessening operating expenses and
focusing resources on the company's lead product, DepoCyt, as well as
DepoMorphine and partnered funded feasibility programs. The company
reduced its staff by 29 employees and now has 124 employees on a
full-time equivalent basis. DepoTech expects to take a one-time charge
of approximately $405,000 relating to severance and out placement
expenses associated with the reduction in the first quarter of 1998.
"While we regret the need to institute this reduction, it will enable us
to maintain the resources and infrastructure necessary to complete
regulatory review of DepoCyt in major world markets with the goal of
commercializing it, and to advance key follow-on projects such as
DepoMorphine," said John P. Longenecker, DepoTech's president and COO.
"We recently completed a review of DepoTech's technology, programs and
strategy, and are well along in developing and adopting a revised
business plan for the company which we are beginning to implement," said
Fred A. Middleton, DepoTech's CEO. DepoTech expects to hold a meeting
later this month with the U.S. Food and Drug Administration (FDA) to
review the status of the development program for DepoCyt in patients
with neoplastic meningitis, and determine next steps in the regulatory
process. In December 1997, the Oncologic Drugs Advisory Committee (ODAC)
to the FDA declined to recommend approval of DepoCyt for use in patients
with neoplastic meningitis from solid tumors. The final decision
regarding marketing approval of new therapeutics resides with FDA
officials subsequent to any recommendation of ODAC. In January 1998, a
Marketing Authorization Application for Savedar, the European trade name
for DepoCyt, was submitted to the European Medicines Evaluation Agency.
DepoTech is a drug delivery company dedicated to the development and
manufacture of innovative, sustained-release therapeutic products based
on DepoFoam technology. Products are being developed to satisfy medical
needs in cancer, pain management and other fields.
Note: This release moved over Business Wire Feb. 2, 1998.
This press release may contain forward-looking statements regarding
DepoTech. Actual results could differ materially from those described in
this news release as a result of a number of factors, including, but not
limited to the following: Uncertainties involved in obtaining regulatory
approval for DepoCyt/Savedar or any of the company's potential products
in the United States and other markets, including time of approval, if
at all; uncertainties involved in commercialization of DepoCyt/Savedar
or any of the company's potential products; ability to attract and
retain qualified personnel. The company undertakes no obligation to
revise or update any forward-looking statements to reflect events or
circumstances after the date of this release.
Additional written materials and recent releases regarding DepoTech are
available on the World Wide Web at depotech.com.
DepoFoam is a trademark of DepoTech Corp.
CONTACT: DepoTech Corp., San Diego
Dana S. McGowan, CFO, 619/625-2424 |
