MATEON THERAPEUTICS, INC. (OTCMKTS:MATN) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05
As noted above, the Company announced staff reductions of a significant portion of its workforce as of September26, 2017.
The Company intends to complete the workforce reduction within one week, or by October2, 2017. The Company intends to provide severance payments and continuation of benefits to the employees whose employment is being terminated as part of the workforce reduction to the extent consistent with the Company’s past practices. The Company’s Chief Executive Officer, William D. Schwieterman, M.D., the Company’s Chief Financial Officer, Matthew M. Loar, and the Company’s Chief Scientific Officer, David J. Chaplin, Ph.D., have each agreed to a 50% reduction of their base salary, effective in the next immediate pay period, with reinstatement of their base salaries to previous levels contingent on the Company raising additional funding of at least $4 million or a change in control of the Company.
The Company estimates the workforce and salary reductions will result in monthly savings of approximately $110,000 in operating expenses, with one-time estimated severance and other cash charges related to the workforce reduction of approximately $160,000 expected to be recorded in the third quarter of 2017. Following the staff reductions and related operational changes described in this Form 8-K, the Company expects to have sufficient cash resources to continue its operations into November 2017.
The Company does not anticipate that there will be any further material future cash expenditures associated with the workforce reduction. The estimated savings and costs noted above are subject to a number of assumptions. Actual results and experience may differ materially as a result of various important factors. The Company may incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the workforce reduction, the salary reductions and the changes to its operations.
The Company is presently engaged in a review of strategic alternatives, including with respect to CA4P and its other clinical-stage product candidate, OXi4503, which may include partnerships, divestitures and/or other potentially value-generating alternatives. If these alternatives are not viable, the Company may never obtain value for its programs or product candidates.
| Item 2.05 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers. |
(e) The disclosures set forth in Item 2.05 of this Current Report on Form 8-K regarding the reductions in base salary for Drs. Schwieterman and Chaplin and Mr.Loar are incorporated by reference. Independent members of the board of directors have agreed to waive their cash compensation until the Company raises additional funding of at least $4 million or there is a change in control of the Company.
On September26, 2017, the Company announced the results of its third interim analysis of the FOCUS trial. Those results indicated that the Company’s product candidate CA4P did not provide a sufficiently meaningful clinical benefit to warrant further development, and accordingly the Company is terminating substantially all future development of CA4P. The Company intends to shift the primary focus of its clinical development efforts to its product candidate OXi4503, for the treatment of acute myelogenous leukemia.
| Item 2.05 | Financial Statements and Exhibits. |
The following exhibits are furnished with this report:
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| 99.1 | Press Release dated September 26, 2017. |
MATEON THERAPEUTICS INC ExhibitEX-99.1 2 d464293dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Mateon Therapeutics Announces Termination of FOCUS Study in Ovarian Cancer and Restructuring to Prioritize OXi4503 for AML Company to terminate FOCUS study due to lack of clear efficacy signal in the third interim analysis Company to reduce headcount,…To view the full exhibit click here
About MATEON THERAPEUTICS, INC. (OTCMKTS:MATN)
Mateon Therapeutics, Inc., formerly OXiGENE, Inc., is a biopharmaceutical company. The Company is focused on the development of vascular disrupting agents (VDAs) for the treatment of cancer. The Company is engaged in developing two clinical stage investigational drugs: VDAs-CA4P and OXi4503. Its lead compound is CA4P, which is also known as combretastatin A4-phosphate, fosbretabulin tromethamine, fosbretabulin and ZYBRESTAT. VDAs selectively targets the vasculature of cancer tumors and obstructs a tumor’s blood supply without disrupting the blood supply to normal tissues. VDAs are in a class of drugs called vascular targeted therapies (VTTs), which also includes anti-angiogenic agents (AAs). CA4P is a reversible tubulin binding agent that selectively targets the endothelial cells that make up the blood vessel walls in solid tumors. The Company is pursuing the development of a product candidate, OXi4503, which is a dual-mechanism VDA.