Two companies have announced salary cuts and other cost-containment measures today. First, we have RegeneRx Biopharmaceuticals. The company said that its largest stockholder--Sigma-Tau Group--has purchased over 1 million shares of the company's stock for $0.57 a share, for gross proceeds of $600,000. RegeneRx is also undertaking a cost reduction program that will decrease salaries of almost all executives and staff by 35 percent. In return, the employees have received, in the aggregate, options to purchase 698,138 shares of RegeneRx common stock at a price of $0.57 per share, one-third of which vest at the end of each remaining calendar quarter during 2009.
"Our cost cutting measures, along with our existing capital and proceeds from the Offering, should be sufficient to allow us to continue our current operations into early 2010," said J.J. Finkelstein, RegeneRx's president and CEO.
Meanwhile, consulting and contract manufacturing company PharmEng International announced that its CEO Alan Kwong will take a 50 percent salary reduction. Additionally, the company's CFO Brian Fielding, Vice-President of Marketing John Durham and Vice-President Charles Ivey have left the company. A number of board members have also resigned.
- see RegeneRx's release
- here's PharmEng's announcement