PhaseRx, Inc. (NASDAQ:PZRX) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05
On October 12, 2017, management of PhaseRx, Inc. (the “Company”) commenced a reduction in its workforce to reduce operating costs and conserve cash resources while it pursues strategic options for its research and development assets. Under this plan, which is expected to be completed in October 2017, the Company expects to reduce its overall workforce by 10 employees (or 50%), including some executive officers.
In connection with the reduction in force, the Company estimates that it will incur aggregate cash charges of between $411,000 and $426,000 related to one-time termination benefits, including severance, and other employee related costs, all of which are expected to be incurred and paid during October 2017.
As a part of the reduction in workforce, the Company also announced that it will delay the development of its lead product candidate PRX-OTC. The Company expects to incur additional charges in connection with its decision to seek strategic alternatives as part of this restructuring plan, which amounts cannot be determined as of the filing of this Current Report on Form 8-K.
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
As part of the workforce reduction, the Company terminated employment of Michael Houston, Ph.D., the Company’s chief scientific officer, effective as of October 12, 2017.
On October 13, 2017, the Company issued a press release announcing the workforce reduction and review of strategic alternatives. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
| Exhibit No. | Description |
| 99.1 | Press release, dated October 13, 2017 |
PHASERX, INC. ExhibitEX-99.1 2 tv476935_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 PhaseRx Announces Corporate Restructuring and Review of Strategic Alternatives SEATTLE,…To view the full exhibit click here
About PhaseRx, Inc. (NASDAQ:PZRX)
PhaseRx, Inc is a biopharmaceutical company developing a portfolio of mRNA products to correct life-threatening inherited liver diseases in children. The Company’s initial product development focus is on urea cycle disorders, a group of rare genetic diseases that generally present before the age of 12 and are characterized by the body’s inability to remove ammonia from the blood. The Company’s i-ERT approach is enabled by its Hybrid mRNA Technology platform and is applicable to a number of inherited liver diseases. The Company is headquartered in Seattle.
