VITAL THERAPIES, INC. (NASDAQ:VTL) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05.Costs Associated with Exit or Disposal Activities
Consistent with our decision to cease any further development of the ELAD® System, on September 13, 2018, Vital Therapies, Inc. (the “Company”) began notifying approximately 85 employees whose employment will be terminated on September 14, 2018. The Company estimates it will incur pre-tax cash charges of $2.0 million to $2.5 million for severance pay expenses and related cash expenditures. The Company expects to recognize the majority of these charges in the third quarter of 2018.
This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements concerning estimated cash payments and expenditures. All statements other than statements of historical facts contained in this report are forward-looking statements. For a detailed description of our risks and uncertainties, you are encouraged to review the official corporate documents filed with the SEC. These forward-looking statements speak only as of the date hereof and Vital Therapies, Inc. disclaims any obligation to update these statements except as may be required by law.
About VITAL THERAPIES, INC. (NASDAQ:VTL)
Vital Therapies, Inc. is a biotherapeutic company. The Company is focused on developing a human hepatic cell-based treatment targeting acute forms of liver failure. Its product candidate, the ELAD System, is an extracorporeal human allogeneic cellular liver therapy designed to allow the patient’s liver to regenerate to a healthy state, or to stabilize the patient until transplant. The ELAD System is a liver support system containing immortal human liver-derived cells, or VTL C3A cells. The Company initiated a Phase III clinical trial in severe acute alcoholic hepatitis (sAAH), referred to as VTL-308. Its VTL-308 is a randomized, open-label, multicenter, controlled, pivotal study, designed to evaluate the ELAD System in subjects with sAAH. It is based on pre-specified and post-hoc analyses of its VTI-208 phase III clinical trial in alcohol-induced liver decompensation (AILD). The Company’s ELAD System consists of approximately four disposable ELAD C3A cell cartridges.