SOUTH SAN FRANCISCO, Calif., Sept. 13 /PRNewswire-FirstCall/ -- VaxGen
Inc. (Pink Sheets: VXGN) today announced further cost-cutting measures
consistent with its continuing commitment to align its cost structure with
its pursuit of strategic initiatives.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO)
VaxGen is reducing its workforce from 61 to 27 employees, which the
company expects will lower its monthly cash expenditures used in operating
activities to $1.4 million. The company will incur a restructuring charge
of approximately $1.1 million in connection with this action. The
terminations include executive officer Lance Ignon, Vice President of
Corporate Affairs.
This is VaxGen's third restructuring since the U.S. Department of
Health and Human Services (HHS) cancelled the company's contract to provide
a modern anthrax vaccine for civilian biodefense in December 2006.
"Throughout this year we have retained only those resources that
management felt could build value for our shareholders, either because they
enhanced our ability to complete a strategic transaction or they were
required to meet essential business objectives," said James P. Panek,
VaxGen's President and CEO. "Based on our understanding of the nature and
structure of such potential transactions, we are now able to take this
further restructuring action. We remain optimistic about completing a
strategic transaction and are in various stages of discussions with a
variety of companies."
VaxGen has retained key resources necessary to support its pursuit of
strategic transactions, including key scientific personnel for technical
due diligence. The company has also retained people associated with the
company's financial reporting obligations to the Securities and Exchange
Commission. "These are not easy decisions, especially when you are talking
about letting go of many talented and dedicated employees," Mr. Panek said.
"In particular, Lance Ignon has tirelessly and competently fulfilled a
variety of responsibilities during his more than seven years of service to
VaxGen. Nonetheless, these staffing decisions are appropriate given the
opportunities we are pursuing and the obligation we have to our
shareholders."
About VaxGen
VaxGen is a biopharmaceutical company based in South San Francisco,
California. For more information, please visit the company's web site at
http://www.vaxgen.com.
Note: This press release contains "forward-looking statements" within
the meaning of the federal securities laws. These forward-looking
statements include without limitation, statements regarding the company's
ability to reduce monthly cash expenditures used in operating activities
and the possibility of selling or merging the company's remaining assets.
These statements are subject to risks and uncertainties that could cause
actual results and events to differ materially from those anticipated.
Readers are cautioned not to place undue reliance on these forward-looking
statements that speak only as of the date of this release. VaxGen
undertakes no obligation to update publicly any forward-looking statements
to reflect new information, events, or circumstances after the date of this
release except as required by law.
SOURCE VaxGen, Inc.
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Related links:
http://www.vaxgen.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
CONTACT:
Matthew Pfeffer, CFO of VaxGen,
+1-650-624-2477
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