Date: 2016-10-10
Type of information: Restructuring
Compound:
Company: Medivir (Sweden)
Therapeutic area: Cancer - Oncology - Infectious diseases
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On October 10, 2016, Medivir announced a reorganization of the company and a significant cost reduction in both early research and administrative functions. The board has decided that the company onwards will have an exclusive focus on oncology, utilizing both of Medivir´s technology platforms and competences in protease inhibition and nucleotide-/nucleoside science. Partnering discussions for all remaining infectious disease assets in the R&D pipeline will be initiated by year-end, as well as for MIV-711 once the phase IIa program has been completed.
Financial terms: The reorganization will result in a total cost reduction of approximately 110 MSEK (€ 11.4 million) per year compared to current levels in the affected functions. The exclusive focus on oncology, along with a reduced number of projects in the early stage research portfolio, will lead to a reduction of around 25 positions and cost savings of approximately 60 MSEK (€ 6.22 million) vs current spending in the early stages of development. The reduced early research organization creates flexibility to strengthen capabilities in clinical development and will enable broadening the pipeline with oncology projects in clinical phases. At the same time, efficiency improvements in administrative and commercial support functions will generate the additional cost savings of approximately 50 MSEK (€ 5.18 million) per year compared to the current levels, impacting around 20 positions. As a consequence of these changes, a total of around 30 colleagues will have to leave the company and affected vacancies will not be filled. A redundancy cost of approximately 20 MSEK (€ 2.07 million) related to these organizational changes will be charged in the fourth quarter.
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