Biovitrum Implements Strategic Restructuring of the R&D Organization
Running R&D expenses estimated to be reduced by MSEK 115 on a rolling
twelve-month basis
STOCKHOLM, May 15, 2008. The Swedish pharmaceutical company Biovitrum
AB (publ) (TICKER: STO:BVT) today announced that it has completed the
review of its research and development organization as announced in
November 2007, when the company's new business strategy was
initiated. In the new strategy, Biovitrum will focus on specialist
care pharmaceuticals, as well as taking its projects all the way to
market. Consequently, Biovitrum is in the process of out-licensing a
majority of the company's primary care projects. As previously
announced, this may also mean that individual projects could be
terminated. Therefore, the company's R&D organization needs to be
restructured and adjusted to the new business focus.
In total, some 150 positions have been thoroughly reviewed,
especially the parts of the organization working with primary care
projects and biotechnical contract development. During this process,
about 100 people have either left the organization, been internally
reallocated or identified as redundant. The restructuring is now
completed, leading to an estimated one-off cost of MSEK 70. The
running fixed R&D expenses are estimated to decrease with about MSEK
115 on a rolling twelve-month basis.
Furthermore, Biovitrum's expertises in protein process development,
previously part of contract production, have been integrated in the
R&D organization. This will provide the company with the competence
and capacity to develop small molecule and protein pharmaceuticals
for diseases with high unmet medical needs. In the new R&D
organization, more people than before will be working with
development projects, and at the same time, running external costs
(e. g. clinical trial costs) will constitute a larger portion of the
R&D budget."The size, flexibility and competence of our new R&D organization
make us well equipped to effectively deliver current and future
specialist care products all the way to the market. The present
staffing reduction and R&D restructuring is a necessary, albeit
painful, step to ensure Biovitrum's continued route to future
growth", said Martin Nicklasson, CEO of Biovitrum.
For more information please contact:
Biovitrum AB (publ)
Erik Kinnman, Vice President Investor Relations
Phone: +46 73 422 15 40
erik.kinnman@biovitrum.com
Martin Nicklasson, CEO
Phone. +46 8 697 20 00
martin.nicklasson@biovitrum.com
About Biovitrum
Biovitrum is a pharmaceutical company with operations in Sweden and
in the UK. Biovitrum has currently a research portfolio with several
projects in clinical and preclinical phases for a number of well
defined specialist indications as well as for common diseases within
obesity, diabetes, inflammation and eye diseases. Biovitrum develops
and produces protein-based drugs on a contractual basis and markets a
range of specialist pharmaceuticals primarily in the Nordic
countries. Biovitrum has revenues of approximately SEK 1.2 billion
and around 480 employees. Biovitrum's share is listed on the OMX
Nordic Exchange in Stockholm since September 15, 2006. For more
information see www.biovitrum.com.