Argos Therapeutics (ARGS) Announces Plans to Cut 13% of Workforce; COO Miesowicz to Resign

Argos Therapeutics (NASDAQ: ARGS) disclosed the following on Tuesday:

Item 8.01 Other Items.

On April 19, 2016, Argos Therapeutics, Inc. (the “Company”) announced a workforce action plan designed to streamline operations and reduce the Company’s operating expenses. Under this plan, the Company plans to reduce its workforce by 18 employees (or 13%). The Company expects that the workforce reduction will be substantially complete by the end of April 2016, after which the Company will have 117 employees. The Company anticipates incurring approximately $0.4 million in total costs associated with the workforce reduction and that such costs will be incurred over the second and third quarters of 2016. Additionally, the Company expects to recognize non-cash stock-based compensation related to the acceleration of vesting of options in connection with the workforce reduction. The Company expects that the workforce reductions will decrease its annual operating costs by $2.3 million. The Company does not expect the workforce action plan to have any impact on the expected timeline for its Phase 3 ADAPT trial.

In addition, on April 15, 2016, Fred Miesowicz, the Company’s Chief Operating Officer, notified the Company of his intention to resign from that position effective as of April 22, 2016. The Company expects to enter into a consulting arrangement with Dr. Miesowicz that will continue through mid-2017, when Dr. Miesowicz expects to retire. However, the terms of his engagement have not been finalized.

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