Societal CDMO Announces Corporate Restructuring
20 September 2023 - 10:05PM
Societal CDMO, Inc. (“Societal CDMO”; NASDAQ: SCTL), a contract
development and manufacturing organization (CDMO) dedicated to
solving complex formulation and manufacturing challenges primarily
in small molecule therapeutic development, today announced a
strategic restructuring plan to streamline and optimize operations.
Following the completion of a comprehensive
review of its operations, Societal has reduced its workforce by 26
positions (9%) across all aspects of the business, effective
September 20, 2023. It also has eliminated nine open positions.
These moves are expected to result in annualized savings of
approximately $5.5 million. A significant majority of the cuts will
impact the portion of the business supporting earlier-stage
services, which are most acutely affected by the current financing
environment.
“Our executive team, in collaboration with our
board of directors, has executed a careful review of our current
operations and resources and determined that this strategic
realignment is essential at this time. Industry-wide funding
challenges, which are particularly impacting early-stage drug
development, dictate that we reduce our infrastructure in areas
that support companies most affected by this slowdown. Taking these
difficult but important steps will enable us to increase our
operational efficiency, especially in areas that historically have
been our greatest strengths. Additionally, this restructuring will
bolster our ability to achieve our growth strategies and continue
to deliver on our commitment to playing a key role in bringing
important medicines to patients,” said David Enloe, chief executive
officer of Societal CDMO. “We are deeply appreciative of the
tireless commitment of all our team members, and extend a heartfelt
thank you for the essential contributions made by those that are
impacted by this restructuring.”
To further support this organizational
realignment, Societal has appointed Wayne Weisman, our current
chairman, as executive chairman of the board of directors.
Appointing Mr. Weisman as executive chairman will enable him, along
with the support of the board, to provide more direct oversight on
the implementation and execution of the corporate strategy.
“I am pleased to assume the role of executive
chairman and further support our management as it navigates today’s
challenging financial environment. I, as well as the other members
of the Societal board of directors, have an excellent working
relationship with our management team, and I appreciate the
opportunity to expand our engagement on these strategic matters,”
stated Mr. Weisman.
About Societal CDMOSocietal
CDMO (NASDAQ: SCTL) is a bi-coastal contract development and
manufacturing organization (CDMO) with capabilities spanning
pre-Investigational New Drug (IND) development to commercial
manufacturing and packaging for a wide range of therapeutic dosage
forms with a primary focus in the area of small molecules. With an
expertise in solving complex manufacturing problems, Societal CDMO
is a leading CDMO providing therapeutic development, end-to-end
regulatory support, clinical and commercial manufacturing, aseptic
fill/finish, lyophilization, packaging and logistics services to
the global pharmaceutical market.
In addition to our experience in handling DEA
controlled substances and developing and manufacturing
modified-release dosage forms, Societal CDMO has the expertise to
deliver on our clients’ pharmaceutical development and
manufacturing projects, regardless of complexity level. We do all
of this in our best-in-class facilities, which total 145,000 square
feet, in Gainesville, Georgia and San Diego, California.
Societal CDMO: Bringing Science to Society. For
more information about Societal CDMO’s customer solutions, visit
societalcdmo.com.
Forward-Looking StatementsThis
press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward looking
statements include, but are not limited to, statements regarding
the anticipated cost savings of the restructuring. The words
“anticipate”, “believe”, “could”, “estimate”, “upcoming”, “expect”,
“intend”, “may”, “plan”, “predict”, “project”, “will” and similar
terms and phrases may be used to identify forward-looking
statements in this press release. Our operations involve risks and
uncertainties, many of which are outside our control, and any one
of which, or a combination of which, could materially affect our
results of operations and whether the forward-looking statements
ultimately prove to be correct. Factors that could cause the
company’s actual outcomes to differ materially from those expressed
in or underlying these forward-looking statements include risks and
uncertainties associated with realizing the expected benefits of
the restructuring plan in a timely manner, or at all, potential
negative impacts of the restructuring on the Company’s business
operations and reputation, retaining skilled and motivated
personnel, costs of restructuring and expected future balances of
cash, cash equivalents and short-term investments These
forward-looking statements should be considered together with the
risks and uncertainties discussed in our filings with the
Securities and Exchange Commission (SEC), including the annual
report on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K, filed with or furnished to the SEC and
available at www.sec.gov. These forward-looking statements are
based on information currently available to us, and we assume no
obligation to update any forward-looking statements except as
required by applicable law.
Contacts:
Stephanie Diaz (Investors)
Vida Strategic Partners
415-675-7401
sdiaz@vidasp.com
Tim Brons (Media)
Vida Strategic Partners
415-675-7402
tbrons@vidasp.com
Ryan D. Lake (CFO)
Societal CDMO
770-531-8365
ryan.lake@societalcdmo.com
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