SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced a corporate restructuring that will reduce its U.S.-based workforce by approximately 17%, primarily in research and development. This restructuring follows the discontinuation of SciClone's RP101 phase 2 clinical trial announced on October 2, 2009.
"Throughout the year SciClone has been strongly focused on containing costs and closely managing expenses. The decision to reduce our workforce in the wake of the RP101 trial discontinuation was inevitable yet difficult, considering the high degree of talent and dedication of our employees," said Friedhelm Blobel, Ph.D., President and Chief Executive Officer of SciClone. "We are committed to moving SciClone towards sustainable profitability. With streamlined operations, decreased expenditures, and expected robust global sales, we believe we are fully on track to realize that objective."
As a result of the restructuring, SciClone anticipates incurring a one-time severance-related charge of approximately $0.3 million, which includes severance and other expenses associated with the workforce reduction plan. SciClone expects to complete the restructuring in the fourth quarter of 2009.
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