Cytori Therapeutics Inc (NASDAQ:CYTX) reported a substantial corporate restructuring planned to significantly lower expenses while maintaining its ability to implement on its BARDA-sponsored cell therapy plan, Japanese business and oncology plan The Cytori Habeo plan for scleroderma is anticipated to move forward depending on feedback from its upcoming meetings with the U.S. FDA and PMDA in Japan. The restructuring is anticipated to lower Cytori’s workforce by around 50% and significantly lower quarterly operational cash burn.
Dr. Marc H. Hedrick, the President and CEO of Cytori, reported that their need to conserve capital and focus their talented team on the priorities relevant for stockholders and other major stakeholders has sadly required them to take action that will impact numerous capable and valued members of the company’s team. In addition, they have recruited TAP Advisors to help them assess numerous potential opportunities the firm has that could improve their ability to create value for investors.
Cytori and its advisors, TAP Advisors, will review a range of options intended at improving shareholder value, including a sale of the firm, a reverse merger, a sale or a business combination, disposition or license of corporate assets of the firm, and potential prospects to raise capital in the investor’s best interest.
Cytori is a therapeutics firm advancing oncologic and regenerative therapies from its cell therapy and nanoparticle platforms for different medical conditions. Data from preclinical trials and clinical studies indicate that Cytori Cell Therapy™ acts mainly by improving blood flow, controlling the immune system, and enabling wound repair.
As a result, this treatment may offer benefits across numerous disease states and can be made accessible to the patient and physician at the point-of-care through Cytori’s proprietary products and technologies. Cytori Nanomedicine™ is advancing liposome encapsulated treatments for regenerative medicine and oncologic indications.
In the last trading session, the stock price of Cytori jumped more than 29% to close the day at $0.635.