Coherus BioSciences (CHRS) Reduces Workforce by 51 Employees
- Wall Street ends volatile week sharply higher
- Disney (DIS) Dips As Streaming Business Shows Signs of Slowing Down, Analysts 'Very Bullish' on LT Opportunity
- Airbnb (ABNB) Bookings Up 52% to Help Sales Beat, Seen as a 'Blow Out Quarter' as More Upside is Left
- DoorDash (DASH) Reports Bigger Loss and a Sales Beat, Shares Soars on Strong Guidance and Two Upgrades to 'Buy'
- Coinbase (COIN) To Add Dogecoin Trading in the Next Few Weeks
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Coherus BioSciences (NASDAQ: CHRS) disclosed in an SEC filing:
On June 21, 2017, the Compensation Committee of the Board of Directors of Coherus BioSciences, Inc. (the “Company”) approved, and management commenced and completed, a restructuring plan to reduce operating costs and better align its workforce with the needs of its business following the U.S. Food and Drug Administration’s (“FDA”) June 12, 2017 issuance of a complete response letter for its Biologics License Application (“BLA”) for CHS-1701, a pegfilgrastim (Neulasta®) biosimilar candidate, under the 351(k) pathway, in which the FDA stated that it cannot approve the Company’s BLA for CHS-1701 in its present form and provided recommendations to the Company to address the issues raised in the letter.
Under this plan, the Company reduced its workforce by 51 employees (approximately 30%). Affected employees are eligible to receive severance payments, reimbursement of COBRA payments and outplacement services. Employees party to change of control and involuntary termination benefit agreements will continue to vest their stock options pursuant to the terms of their agreements. Certain senior executives received accelerated vesting of certain stock options and an extension to the post-termination exercise period for certain stock options. In each case, employee severance benefits are contingent upon an affected employee’s execution (and non-revocation) of a separation agreement, which includes a general release of claims against the Company. The Company expects that the workforce reduction will decrease its annual operating costs by approximately $10 million.
In connection with the restructuring, the Company estimates that it will incur aggregate restructuring charges of approximately $3.7 million, which will be recorded in the second quarter of 2017, related to one-time termination severance payments and other employee-related costs, including approximately $1.6 million of stock-based compensation expense related to the acceleration of stock options and the extension of post-termination stock option exercise periods. The majority of the cash payments related to the personnel-related restructuring charges will be paid during the third quarter of 2017, with the remainder to be paid during the fourth quarter of 2017. The charges that the Company expects to incur in connection with the workforce reduction is subject to a number of assumptions, and actual results may differ materially. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the workforce reduction.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Evoke Pharma (EVOK) Announces Vickie Reed to Board
- GreenBox POS (GBOX) Announces Board Approval of Share Buyback Program
- Ginkgo Bioworks and Soaring Eagle Acquisition (SRNG) have agreed to business combination
Create E-mail Alert Related CategoriesCorporate News
Related EntitiesLayoffs, S1, FDA
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!