NEW YORK – Belgium molecular diagnostics firm Biocartis said Thursday that it is planning a reorganization and cost-reduction program that aims to reduce annual operating expenses by €18 million ($19.7 million).
The company said this reorganization will include layoffs of roughly 140 employees, approximately 25 percent of its workforce. As part of the reorganization, Chief Operating Officer Piet Houwen has submitted his resignation effective Sept. 1, 2023.
Additionally, Mechelen, Belgium-based Biocartis plans to engage an international investment bank to explore options for recapitalizing the company.
"This reorganization is the first step necessary to create a clear path to financial independence by focusing on near-term growth from our existing business and delivering on our strategic partnership agreements that provide long-term value," Biocartis CEO Roger Moody said in a statement. "I am confident that the streamlined organization will be able to continue to build on the strengths of our fully automated molecular platform with its unmatched ease-of-use, turnaround-time and sample versatility in oncology."
Biocartis said it was withdrawing its 2023 guidance at least until the release of its H1 2023 financial results on Aug. 31 due to uncertainty related to the reorganization.