7:42AM Biota Pharmaceuticals announces results of strategic and operational review (BOTA) 4.20 : Co announced that its Board of Directors has adopted a revised corporate strategy following the recent completion of management's strategic and operational review of the organization and its various development programs. The implementation of this strategy will shift the Co's primary focus from early-stage research to clinical-stage development programs that it could independently advance into late-stage development. Immediate actions will include rationalizing the Co's preclinical programs, a realignment of its operations and resources, and a reduction in its workforce.
The reduction in the Co's workforce will be implemented immediately, reducing the number of its employees and contractors by ~30% over the next several quarters. The reduction will be concentrated on research and development functions dedicated to drug discovery, but other areas of the organization, including general and administrative positions, will be affected.
As a result, the Co anticipates recording a charge of ~$2.0 mln in Q4 of its 2013 fiscal year (the Co's fiscal year-end is June 30) related to the cost of one-time termination benefits. The Co expects an annual reduction in salaries and benefits of ~$3.8 mln on an ongoing basis. Based upon the adoption of this corporate strategy, the Co believes that its base burn from operations will decrease substantially in fiscal 2014, and anticipates that its cash, cash equivalents and short-term investments on hand will be ~$62-$67 mln at June 30,
