MicroRNA-based molecular diagnostics company Rosetta Genomics announced that it is cutting its monthly burn rate by 32 percent to reduce annual operating expenses by $4 million. Twenty percent of the company's positions--or 14 jobs--will be eliminated, primarily in R&D and administrative departments. Those who keep their jobs will move to a four-day work week and take a 20 percent salary cut. The changes, which Rosetta expects to complete by early December, will give the developer enough cash to fund operations through March 2011. Reuters notes that Rosetta's stock has fallen 45 percent in the last month and is currently trading at $1.20.
"We are undertaking these cost-saving measures to ensure that the company has sufficient financial resources to implement its growth strategy through to key inflection points, including new product launches, license agreements and potential partnerships that would provide [us] with additional cash infusions," explained Rosetta CEO Kenneth Berlin. He added that the cutbacks won't interfere with the planned launches of a second-generation miRview diagnostic test, or other diagnostics in development.
- take a look at Rosetta's release
- read the report from Reuters.