GPC Biotech Announces Corporate Restructuring
Martinsried/Munich (Germany) and Princeton, N.J., November 15, 2007 â€“ GPC Biotech AG (Frankfurt Stock Exchange: GPC; TecDAX index; NASDAQ: GPCB) today announced a restructuring that involves staff reductions of approximately 44 percent of the Companyâ€™s current active workforce. The staff reductions are taking place in both Germany and the U.S.Â The Company is retaining key personnel needed to achieve the Companyâ€™s medium- and longer-term goals.
Bernd R. Seizinger, M.D., Ph.D., Chief Executive Officer, said:Â â€œOur goal of having approximately two years of operating cash on hand at the end of 2007 has sadly necessitated very significant staff reductions on both sides of the Atlantic.Â I would like to express my sincere appreciation to our affected employees for their contributions to GPC Biotech.â€
Dr. Seizinger continued:Â â€œThis is a very challenging time for GPC Biotech.Â However, we have retained a smaller, excellent team, who we are confident can effectively address these challenges and move our Company forward.Â We are implementing a revised strategic plan, which includes focusing our internal efforts on a limited number of development-stage oncology projects, significantly increasing our licensing efforts and actively exploring M&A opportunities on both sides of the Atlantic.â€
The Companyâ€™s restructuring plan involves a staff reduction of 103 employees. The reduction in force affects 60 employees in Munich and 43 in Princeton.Â The remaining work force will be 56 in Munich and 58 in Princeton after the completion of the shutdown of the Companyâ€™s Waltham, Massachusetts facility in a few weeks.Â Thus, going forward the Company will have 114 active employees. Affected employees will be eligible for severance packages that include severance pay, continuation of benefits and outplacement services. The Company has retained a core drug development team that is headquartered in the U.S., with a small group of development people retained in Germany to support ongoing and future work in Europe.Â The Company has also retained a core drug discovery group in Munich that will support drug development in addition to continuing late stage drug discovery efforts focused on kinase inhibitors. General and administrative staff also has been reduced.Â A small group of key commercialization team members has been retained in the U.S. to support drug development and business development activities.
GPC Biotech confirmed its previous guidance that the Company expects its year-end 2007 cash, cash equivalents and available-for-sale securities position to be approximately â‚¬ 60 million.
About GPC Biotech
GPC Biotech AG is a publicly traded biopharmaceutical company with a mission to discover, develop and commercialize new anticancer drugs. GPC Biotech's lead product candidate is satraplatin, an oral platinum compound.Â The Company has various anti-cancer programs in research and development that leverage its expertise in kinase inhibitors. GPC Biotech AG is headquartered in Martinsried/Munich (Germany) and has a wholly owned U.S. subsidiary headquartered in Princeton, New Jersey. For additional information, please visit GPC Biotech's Web site at www.gpc-biotech.com.
This press release contains forward-looking statements, which express the current beliefs and expectations of the management of GPC Biotech, including financial projections and forecasts relating to our operations and financial situation.Â Such statements are based on current expectations and are subject to risks and uncertainties, many of which are beyond our control, that could cause future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially depending on a number of factors, and we caution investors not to place undue reliance on the forward-looking statements contained in this press releaseÂ We direct you to GPC Biotechâ€™s Annual Report on Form 20-F for the fiscal year ended December 31, 2006 and other reports filed with the U.S. Securities and Exchange Commission for additional details on the important factors that may affect the future results, performance and achievements of GPC Biotech. Forward-looking statements speak only as of the date on which they are made and GPC Biotech undertakes no obligation to update these forward-looking statements, even if new information becomes available in the future.