Genmab Announces Reorganization Plan

Genmab Announces Reorganization Plan

  • Intent to reduce headcount by approximately 33 positions to match future workload
  • Annualized savings of approximately DKK 30 million

• Development programs will not be affected

 

Copenhagen, Denmark; October 25, 2010 - Genmab A/S (OMX: GEN) announced today plans to reorganize its workforce as part of its strategy to build a profitable and successful biotech company. The company intends to reduce its staff by approximately 33 positions as a result of the reorganization. The annualized impact of the reorganization is estimated to yield savings of approximately DKK 30 million.

Genmab's corporate strategy is to employ a disciplined approach in maintaining an efficient operating model, while retaining core skills in-house. As a result of this initiative, the restructuring of the ofatumumab agreement with GlaxoSmithKline, and the intent to partner zalutumumab, the workload for certain employees will decline. This reorganization will more closely align headcount with future workload. In addition, the reorganization will contribute to Genmab's plan to reduce operating expenses by 20% in 2011. No development programs will be discontinued as a result of this reorganization.

"I truly regret the need to reorganize our workforce especially given the tremendous efforts and loyalty displayed over the years by Genmab's employees. I would like to express my gratitude to all the employees who have contributed to Genmab's success," said Jan van de Winkel, Ph.D., Chief Executive Officer of Genmab. "We must, however, continue to focus on Genmab's core competency of antibody creation, development and innovation. Today's reorganization is a key step in our commitment to our updated corporate strategy and our goal of becoming a profitable business."

This reorganization plan is not expected to have a material impact on Genmab's 2010 financial guidance, with an anticipated total cash impact of DKK 25 million, with DKK 7 million impacting 2010.

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