CuraGen to Close Pilot Manufacturing Plant- Reducing Preclinical and Manufacturing Workforce to Focus Resources on Clinical Pipeline -
BRANFORD, Conn., June 19, 2007 /PRNewswire-FirstCall/ -- CuraGen Corporation , a clinical-stage biopharmaceutical company focused on oncology, announced today it is closing its pilot manufacturing plant, effective July 27, 2007. As a result, CuraGen will reduce its workforce by approximately 40 employees, primarily composed of preclinical and manufacturing researchers, and additional support staff from within the organization. This action is being implemented following the previously announced reductions in early-stage and preclinical drug discovery and decreased emphasis on internal manufacturing capabilities.
The pilot manufacturing facility, also known as the Biopharmaceutical Sciences Process (BPS) facility, is a 29,000 square foot leased facility that was used by CuraGen for pilot scale production of proteins and antibodies. The BPS facility primarily supported early-stage pipeline development and non- GMP manufacturing.
Affected employees will be eligible for a severance package that includes severance pay, continuation of benefits and outplacement services. Charges relating to this corporate restructuring, the majority of which will be accrued during the second quarter of 2007, are estimated to be approximately $8 million, including non-cash charges of approximately $6 million relating primarily to assets to be written off or disposed of in connection with the closure of the BPS facility and cash payments of approximately $2 million for severance and other related obligations.
Updated financial guidance will be provided when CuraGen issues its second quarter 2007 financial results on July 26, 2007. By the end of 2007, CuraGen expects to have approximately 50 employees compared to 89 currently.
"The contribution made by all members of the CuraGen team is sincerely and deeply appreciated. This strategic decision was difficult but necessary to ensure that CuraGen focuses its resources and invests appropriately into velafermin, belinostat and CR011-vcMMAE which represent the most significant value to CuraGen, its employees and its shareholders," stated Frank Armstrong, M.D., President and Chief Executive Officer of CuraGen Corporation.
CuraGen Corporation is a dedicated clinical-stage biopharmaceutical company developing diverse approaches, including novel protein, antibody, antibody-drug conjugate and small molecule therapeutics for the treatment of cancer and for cancer supportive care. CuraGen is currently conducting clinical trials to investigate the potential of velafermin, belinostat and CR011-vcMMAE. By leveraging the drug development strengths cultivated over the years, CuraGen expects to make a difference by advancing its promising therapeutics to address the unmet medical needs of cancer patients. CuraGen Corporation is headquartered in Branford, Connecticut. For additional information please visit www.curagen.com.
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements regarding anticipated expense reductions, restructuring charges, expected year-end employee headcount, business prospects and plans and similar matters may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements can be identified by terminology such as "anticipate," "believe," "could," "could increase the likelihood," "estimate," "expect," "intend," "is planned," "may," "should," "will," "will enable," "would be expected," "look forward," "may provide," "would" or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including the risk that any one or more of CuraGen's drug development programs will not proceed as planned for technical, scientific or commercial reasons or due to patient enrollment issues or based on new information from nonclinical or clinical studies or from other sources, the success of competing products and technologies, CuraGen's stage of development as a biopharmaceutical company, uncertainty of additional funding, CuraGen's history of incurring losses and the uncertainty of achieving profitability, government regulation and healthcare reform, technological uncertainty and product development risks, product liability exposure, reliance on research collaborations and strategic alliances, competition, patent infringement claims against CuraGen's products, processes and technologies, CuraGen's ability to protect its patents and proprietary rights and uncertainties relating to commercialization rights, as well as those risks, uncertainties and factors referred to in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 filed with the Securities and Exchange Commission under the section "Risk Factors," as well as other documents that may be filed by CuraGen from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. CuraGen is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CRGN-F Contact: Glenn Schulman, PharmD Director of Investor Relations (888) firstname.lastname@example.org
CONTACT: Glenn Schulman, PharmD, Director of Investor Relations of CuraGenCorporation, +1-888-436-6642, email@example.com
Web site: http://www.curagen.com//
Ticker Symbol: (NASDAQ-NMS:CRGN)
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Posted: June 2007