DiaGenic implements cost reduction program
DiaGenic announces that it will implement a program to reduce the company’s operational expense level. The program is aimed to maximize DiaGenic’s flexibility related to corporate development initiatives while retaining core capabilities for its current business critical operations.
As part of this cost reduction initiative, DiaGenic expects to complete a staff reduction, as well as to seek reductions in facility and administrative expenses. The estimated cost saving upon full effect is estimated to be in excess of NOK 600 thousand per month.
DiaGenic is currently in late stage of exploratory development of two product candidates, AMYtect™ and MCItect®. Top line results from these studies are expected around the end of the third quarter this year, and full study readouts are planned for Q4. The company’s third product ADtect®is pending a validation study ready to be performed following readout of the above studies.
AMYtect™ and MCItect® are considered key products for the company as they address important unmet needs in the Alzheimer’s disease market and have attracted significant interest from potential business partners. Following positive results from DiaGenic’s on-going studies and prior to clinical use, both products must undergo validation studies, which will require additional equity financing, strategic partnerships, or an asset or trade sale.
The cost reduction program is focused on shorter term asset value development while maximizing DiaGenic’s flexibility for longer term company development within the current financial framework.
Contact:
Paul de Potocki, Chief Executive Officer
Telephone: 47 2324 8950
e-mail: paul.depotocki@diagenic.com
About DiaGenic ASA
DiaGenic is an innovative Norwegian diagnostic company that seeks to create value for patients, partners and investors by developing innovative and patient friendly in vitro diagnostic (IVD) products for early detection of diseases. The company’s proprietary concept implies that a disease evokes systemic responses in the blood unique for the disease, and which can be measured by using a blood sample. DiaGenic is a world leader in identifying gene expression signatures in blood and is focused on the development of IVD biomarker products in the field of Alzheimer’s disease. The company protects its technology through an extensive patent portfolio. DiaGenic is listed on the Oslo Stock Exchange. For more information please visit: www.diagenic.com