NEW YORK (GenomeWeb) – BG Medicine, which said last month it had laid off more than half of its staff, said in a regulatory document on Friday that it has suspended further payments to its non-employee board directors, effective Oct. 1.
The company said in a document filed with the US Securities and Exchange Commission that it has stopped cash payments and equity compensation to its non-employee directors in order to use its resources for "other operational purposes." It added that it will re-evaluate its policy for paying non-employee directors in 2015.
The news follows BG Medicine's disclosure last month that it had laid off 12 of its 22 employees in order to reduce its operating expenses and make funds available in anticipation of the commercial launch of its galectin-3 test in the US next year. As a result of the layoffs, the Waltham, Mass.-based firm did away with its sales and marketing team and positions in other areas. The restructuring is expected to save the firm $1.9 million annually, it said.
Simultaneously, BG Medicine said in September that it had been notified by Nasdaq that it failed to meet a listing requirement for a minimum closing bid price of at least $1 per share and could face delisting action.
The company had about $9.5 million in cash as of June 30, the most recent date for which figures are available. During the second quarter, BG Medicine reported a 20 percent drop year over year in revenues. The firm's first quarter revenues were down 17 percent year over year.