NEOTHETICS, INC. (NASDAQ:NEOT) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05Costs Associated with Exit or Disposal Activities.
As previously announced on June 26, 2017, Neothetics, Inc.’s (the “Company”) Phase 2 proof-of-concept trial, LIPO-202-CL-31, did not demonstrate improvement on any efficacy measurements or separation from placebo. In light of these results, the Company has implemented a reduction of the Company’s current full-time workforce of 6 employees to 2 employees in order to reduce operating expenses and conserve cash resources. The Company expects that this workforce reduction will be effectuated during the third quarter of 2017. The Company estimates that it will incur aggregate cash charges of approximately $647,000 million associated with the workforce reduction during 2017 in connection with approximately $600,500 in severance payments and approximately $46,500 in continuation of benefits.
Item 5.02Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On July 10, 2017, following the recommendation of its Compensation Committee, the Board approved a cash incentive award of $150,000 to Susan A. Knudson under the Company’s 2014 Equity Incentive Plan.Payment of the cash award is contingent upon consummation of a strategic transaction and that the officer’s service has not terminated prior to the consummation of such a transaction.
Item 8.01Other Events.
On July 10, 2017, the issued a press release announcing its plans to initiate a process to explore and review a range of strategic alternatives, including the engagement of Oppenheimer & Co. Inc. to act as its exclusive financial advisor for the process.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits.
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Exhibit Number |
Description |
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99.1 |
Press Release, dated July 10, 2017 |
Neothetics, Inc. ExhibitEX-99.1 2 neot-ex991_6.htm EX-99.1 neot-ex991_6.htm Exhibit 99.1 NEOTHETICS ANNOUNCES REVIEW OF STRATEGIC ALTERNATIVES SAN DIEGO July 10,…To view the full exhibit click here
About NEOTHETICS, INC. (NASDAQ:NEOT)
Neothetics, Inc. is a clinical-stage specialty pharmaceutical company, which develops therapeutics. The Company focuses on localized fat reduction and body contouring. It focuses on the development of LIPO-202 for the reduction of central abdominal bulging due to subcutaneous fat in non-obese patients. It has completed Phase II development of LIPO-202. LIPO-202 is administered in a subcutaneous injection procedure that activates a natural metabolic process to shrink fat cells, without killing them, resulting in localized fat reduction, measurable results within four weeks and minimal risk with no downtime. The Company is developing a product candidate, LIPO-102, an injectable form of a combination of salmeterol xinafoate and fluticasone propionate. LIPO-102 is indicated for the treatment of the orphan indication of symptomatic exophthalmos, or protrusion of the eye from the orbit, associated with thyroid-related eye disease caused by the expansion of fat and muscle behind the eye.