Genmab Announces Reorganization Plan
Genmab Announces Reorganization Plan
Oct. 25, 2010 (GlobeNewswire) --
- Intent to reduce headcount by approximately 33 positions to match future workload
- Annualized savings of approximately DKK 30 million
- Development programs will not be affected
COPENHAGEN, Denmark, Oct. 25, 2010 (GLOBE NEWSWIRE) -- Genmab A/S (Copenhagen:GEN) announced today plans to reorganize its workforce as part of its strategy to build a profitable and successful biotech company. The company intends to reduce its staff by approximately 33 positions as a result of the reorganization. The annualized impact of the reorganization is estimated to yield savings of approximately DKK 30 million.
Genmab's corporate strategy is to employ a disciplined approach in maintaining an efficient operating model, while retaining core skills in-house. As a result
of this initiative, the restructuring of the ofatumumab agreement with GlaxoSmithKline, and the intent to partner zalutumumab, the workload for certain
employees will decline. This reorganization will more closely align headcount with future workload. In addition, the reorganization will contribute to
Genmab's plan to reduce operating expenses by 20% in 2011. No development programs will be discontinued as a result of this reorganization.
"I truly regret the need to reorganize our workforce especially given the tremendous efforts and loyalty displayed over the years by Genmab's employees. I would like to express my gratitude to all the employees who have contributed to Genmab's success," said Jan van de Winkel, Ph.D., Chief Executive Officer of
Genmab. "We must, however, continue to focus on Genmab's core competency of antibody creation, development and innovation. Today's reorganization is a key step in our commitment to our updated corporate strategy and our goal of becoming a profitable business."
This reorganization plan is not expected to have a material impact on Genmab's 2010 financial guidance, with an anticipated total cash impact of DKK 25
million, with DKK 7 million impacting 2010.
About Genmab A/S
Genmab is a leading international biotechnology company focused on developing fully human antibody therapeutics for the potential treatment of cancer.
Genmab's world class discovery and development teams are using cutting-edge technology to create and develop products to address unmet medical needs. Our primary goal is to improve the lives of patients who are in urgent need of new treatment options. For more information on Genmab's products and technology,
visit www.genmab.com.
This Stock Exchange Release contains forward looking statements. The words "believe", "expect", "anticipate", "intend" and "plan" and similar expressions
identify forward looking statements. Actual results or performance may differ materially from any future results or performance expressed or implied by such
statements. The important factors that could cause our actual results or performance to differ materially include, among others, risks associated with
product discovery and development, uncertainties related to the outcome and conduct of clinical trials including unforeseen safety issues, uncertainties
related to product manufacturing, the lack of market acceptance of our products, our inability to manage growth, the competitive environment in relation to
our business area and markets, our inability to attract and retain suitably qualified personnel, the unenforceability or lack of protection of our patents
and proprietary rights, our relationships with affiliated entities, changes and developments in technology which may render our products obsolete, and
other factors. For a further discussion of these risks, please refer to the section "Risk Management" in Genmab's Annual Report, which is available on
www.genmab.com. Genmab does not undertake any obligation to update or revise forward looking statements in this Stock Exchange Release nor to confirm such statements in relation to actual results, unless required by law.
Genmab(R); the Y-shaped Genmab logo(R); HuMax(R); HuMax-CD20(R); HuMax-EGFr(TM); HuMax-IL8(TM); HuMax-TAC(TM); HuMax-HepC(TM); HuMax-CD38(TM); HuMax-TF(TM); HuMax-Her2(TM); HuMax-Wnt(TM); HuMax-cMet(TM) and UniBody(R) are all trademarks of Genmab A/S. Arzerra(R) is a trademark of GlaxoSmithKline.
Stock Exchange Release no. 42
CONTACT: Genmab
Helle Husted, Vice President, Investor Relations
+45 33 44 77 30
M: +45 25 27 47 13
h.husted@genmab.com
Source: Globe Newswire (October 25, 2010 - 9:30 AM EDT)
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