Ayala Pharmaceuticals Inc (ADXS)

[pharmeng]

Now they committed the capital expenses to their own manufacturing facility, there is a lot of headcount that goes with it (operations, quality, microbiology, manufacturing, analytical testing, etc). If they laid everyone off they would have to outsource these activities which still cost a lot, and then waste the investment they put in.

It's difficult for them to undo this at this point. I hope they get a permanent CEO soon, but Tony is likely doing the best he can, which is focusing the clinical development programs. Lot of large Pharmas are going through this process as well and out-licensing programs, doesn't necessarily mean the drug is a poor performer.