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Drugs

Cortech Inc. Reduces Staff by 20% Due to Decreasing Activities

Strategic Insights

— 1 min read

Cortech Inc., a Denver-based biopharmaceutical firm, has announced the reduction of its staff by 34 employees, equivalent to 20% of its workforce, primarily due to decreasing activities in pilot-manufacturing and related functional areas. The restructuring aims to reduce spending and conserve cash, while still maintaining the ability to ramp up quickly to respond to future needs. This move follows a previous peak of 206 full-time equivalent positions in July 1994.

Key Takeaways:

  • The reduction in staff will result in a saving of approximately $750,000 per quarter for Cortech, with the reduction in spending beginning within a quarter.
  • The company currently has cash and cash equivalents of $36.3 million, with a cash depletion rate of $5.7 million for the fourth quarter of 1994.
  • Cortech is developing three classes of compounds for inflammatory and immunologic disorders, with its lead bradykinin antagonist, Bradycor, currently in separate Phase 2 trials.
  • The company has filed an investigational new drug (IND) application for its lead antigen-specific immunomodulator, Sulfasim, and plans to initiate Phase 1/2 trials later this year.
  • Cortech has collaborations with Marion Merrell Dow and Ono Pharmaceutical Co. Ltd. for the development of elastase inhibitors.

Statistics:

  • Reduction in staff: 34 employees (20% of the workforce)
  • Reduction in spending: approximately $750,000 per quarter
  • Current cash and cash equivalents: $36.3 million
  • Cash depletion rate for Q4 1994: $5.7 million
  • Peak full-time equivalent positions: 206 (July 1994)

Sources:

  • Cortech Inc., PRNewswire, "Cortech Inc. (NDAQ: CRTQ) today announced the reduction of its staff by 34 employees, or about 20 percent, primarily as a result of decreasing activities in the pilot-manufacturing and related functional areas..." (Source: PRNewswire, March 28, 1995)
  • Cortech Inc., PRNewswire, "Cortech anticipates initiating Phase 1/2 trials with the compound for the prevention of allergy to sulfamethoxazole in HIV-infected patients later this year." (Source: PRNewswire, March 28, 1995)
  • Cortech Inc. Press Release, "Cortech Files IND for CE-1037, Leads to Future Collaborations" (Source: Cortech Inc. Press Release, March 1995)

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