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Biotech / Medical : Biotech Lock-Up Expiration Hell Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (417)	9/19/2001 7:29:52 PM
From: nigel bates	Respond to of 1005

MediChem Life Sciences Announces Corporate Restructuring Plan And Staff Reductions CHICAGO, Sept. 19 /PRNewswire/ -- MediChem Life Sciences (Nasdaq: MCLS - news), a drug discovery company, announced today that it has taken significant steps to streamline operations and reduce operating expenses. The plan includes staff reductions and a significant decrease in operating expenses resulting from the consolidation of operations to its Woodridge Discovery Center. As a part of the restructuring plan, MediChem is reducing its staff by 25 percent by the end of the third quarter 2001. Staff reductions will consist primarily of general and administrative positions with a minimal impact on scientific headcount. The majority of positions eliminated are a result of redundancies caused by the consolidation of laboratory operations to the Woodridge Discovery Center. As exemplified by the Company's recent addition of a vice president of medicinal chemistry and three directors in structural biology, MediChem will continue efforts to develop its scientific staff. In 2002, it is estimated that the restructuring will provide annual savings of approximately $3.0 million. The Company expects to record a one time, third quarter charge of $650,000 to reflect the severance costs associated with these staff reductions. In addition to the staff reductions, MediChem intends to reduce its total operating expenses. These initiatives are expected to reduce annual general and administrative expenses by approximately $1.9 million and sales and marketing expenses by approximately $600,000. The combination of staff reductions and operating expense savings are expected to result in total savings of $1.1 million in the fourth quarter 2001 and $5.5 million in 2002. ``I am confident the staff reductions will not affect current collaborations or have an effect on new business opportunities,'' said Michael T. Flavin, Ph.D., president and CEO of MediChem. ``Our goal is to streamline the company to reduce general and administrative expenses and become more cost effective while we continue to build upon our core scientific expertise and technologies in structural proteomics, medicinal chemistry, and chemical process R&D and scale-up.'' The Company reviews the carrying amount of its long-lived assets whenever events or changes indicate that the carrying amount of an asset may not be recoverable. As a result of the aforementioned staff reductions and the present economic environment, management is in the process of conducting such a review. At the present time, management expects that this review will result in a material impairment of certain intangible assets. An impairment charge would not impact the Company's cash position. Any charges resulting from management's impairment review will be communicated in the Company's press release and conference call for the third quarter 2001...