SAN DIEGO, Sept. 01, 2017 (GLOBE NEWSWIRE) — Cytori Therapeutics (NASDAQ:CYTX) (“Cytori” or the “Company”) today announced a substantial corporate restructuring intended to significantly reduce expenses while maintaining its ability to execute on its BARDA-sponsored cell therapy program, Japanese business and oncology program. The Cytori Habeo program for scleroderma is expected to move forward based on feedback from its forthcoming meetings with the FDA in the U.S. and PMDA in Japan. The restructuring is expected to reduce Cytori’s workforce by approximately 50% and significantly reduce quarterly operational cash burn.
“Our need to conserve capital and focus our talented team on the priorities most relevant for stockholders and other key stakeholders has sadly required us to take action that will affect a number of valued and capable members of the Cytori team,” said Dr. Marc H. Hedrick, Cytori’s President & CEO. “In addition, we have engaged TAP Advisors to help us evaluate several potential opportunities the company has that could enhance our ability to create value for stockholders.”
The Company and its advisors, TAP Advisors, will consider a range of options aimed at enhancing shareholder value, including a sale of the Company, a reverse merger, a business combination or a sale, license or other disposition of corporate assets of the Company, as well as potential opportunities to raise capital in the shareholder’s best interest.
About Cytori Therapeutics
Cytori is a therapeutics company developing regenerative and oncologic therapies from its proprietary cell therapy and nanoparticle platforms for a variety of medical conditions. Data from preclinical studies and clinical trials suggest that Cytori Cell Therapy™ acts principally by improving blood flow, modulating the immune system, and facilitating wound repair. As a result, Cytori Cell Therapy™ may provide benefits across multiple disease states and can be made available to the physician and patient at the point-of-care through Cytori’s proprietary technologies and products. Cytori Nanomedicine™ is developing liposome encapsulated therapies for regenerative medicine and oncologic indications. For more information, visit www.cytori.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding events, trends and business prospects, which may affect Cytori’s future operating results and financial position. Such statements, include, but are not limited to, statements regarding, the potential to reduce expenses, the ability to continue to progress the BARDA-sponsored cell therapy program and the potential to engage in any strategic transactions. These statements are subject to risks and uncertainties that could cause Cytori’s actual results and financial position to differ materially. Some of these risks and uncertainties include: the risk that the cost and other negative effects related to the workforce reduction may be greater than anticipated; the risk that Cytori may not realize the benefits expected from the workforce reduction or other cost control measures; the risk that Cytori may need additional funds to conduct its operations, and that investors may not agree with the manner in which Cytori allocates its resources; unexpected or unfavorable clinical data, and the risk that regulatory agencies may interpret or weigh the importance of data differently and reach different conclusions than Cytori, request additional information, have additional recommendations or change their guidance or requirements; the timing, success and cost of Cytori’s research and development and related strategy and decisions; Cytori’s ability to comply with the terms of its credit agreement and the potential for acceleration of amounts owed to its secured lender; the potential for litigation or other disagreements with third parties; and other risks and uncertainties described under the “Risk Factors” section in Cytori’s Securities and Exchange Commission filings on Form 10-K and Form 10-Q. Cytori assumes no responsibility to update or revise any forward-looking statements contained in this press release to reflect events, trends or circumstances after the date of this communication.
CONTACT: Investor Contact: Tiago Girao ir@cytori.com Cytori Therapeutics, Inc. 1-858-458-0900
