Regado Biosciences (RGDO) Plans 60% Workforce Reduction

Regado Biosciences (NASDAQ: RGDO) announced a reduction of its workforce of approximately 60%, or 20 employees, across all operational sites. As a result of the workforce reduction, the company projects restructuring charges in the third and fourth quarter of 2014 of approximately $2 million in connection with one-time employee termination costs and facility shut down expenses. Regado expects that the reduction in workforce, coupled with the termination of expenses associated with its REGULATE-PCI clinical trial, will decrease annualized cash expenditures significantly.

Based on REGULATE-PCI trial closing and data analysis charges incurred to date, Regado projects a cash balance of approximately $61 million at the end of the third quarter of 2014 with final trial closing costs and ongoing operational costs impacting the projected cash balance for the end of 2014. Regado will provide more details on its financial condition as part of its third quarter financial reporting.

"The termination of REGULATE-PCI led us to important business decisions," said David J. Mazzo, Ph.D., CEO of Regado. "The workforce reduction was a necessary action to conserve working capital and provide maximum flexibility in determining the future direction of Regado. We appreciate the contributions and efforts of all of the employees affected by this action and thank them for their dedicated service."

"In addition to these operational changes, we have initiated a campaign to evaluate a broad range of strategic alternatives that could maximize returns for Regado shareholders in the near future," Dr. Mazzo added. "We will provide an update on this during our next quarterly financial results conference call."

Going forward, Regado will focus resources on three principal activities: completion of final closure of the REGULATE-PCI trial and analysis of the unblinded database (expected in the fourth quarter of 2014), diligence activities associated with thoroughly exploring potential business alternatives and compliance activities associated with being a public company in good regulatory standing.

MTS Health Partners, L.P., and Cowen and Company, LLC, have been retained by the company to serve as strategic advisors.

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