NEW YORK (GenomeWeb News) – Pressure Biosciences today said that it has undertaken a restructuring program that will include the reduction of eight positions at the firm and the closure of its R&D facility in Rockville, Md.
The South Easton, Mass.-based firm said that it will refocus its business efforts on key specific areas where its products have found market acceptance. Chief among these are the mass spectrometry market, in which the firm sells its pressure cycling technology for protein digestion prior to mass spec analysis.
Pressure BioSciences also said it would focus on the accelerated release of its high-throughput sample processing system for mass spec applications. It also plans a sharper sales focus on products for biomarker discovery, soil biology, and counter-bioterror applications.
The restructuring and job cuts, which account for 40 percent of the firm’s staff, became effective on Nov. 26, Pressure Bio said. It expects to record restructuring charges of roughly $65,000 in the fourth quarter of 2008. The firm granted terminated employees non-qualified stock options to purchase a total of 60,000 shares of common stock in return for their agreements to provide consulting services from December 2008 to December 2009.
Pressure Bio expects the restructuring program will decrease its cash burn rate to just under $600,000 per quarter beginning in 2009 from its current rate of just under $1 million per quarter. The company said in a statement that “these actions were necessary to extend its current cash resources through the second quarter of 2009, to allow time to complete its current equity financing, to enter into a strategic alliance with one or more marketing and distribution partners, and/or to seek other strategic options.”
Shares of Pressure Bio were up 26 percent at $.91 in Monday afternoon trade on the Nasdaq.