Boston, MA 10/04/2013 (wallstreetpr) – Delcath Systems, Inc. (NASDAQ:DCTH) a leader in pharmaceutical and medical devices has announced plans of how it intends to achieve operation efficiency in the coming years. Part of the reorganization plans involves cutting down on workforce that it does not need. Delcath has completed the reorganization plans by slashing down 21 positions; this translates to 33% of its global workforce. This is part of its plans to try and cut on operation costs as a way of tying to boost its profit margins and revenue collection.
Delcath estimates cash utilization in the range of $7-$8 million for the third quarter of this fiscal year as compared to its previously announced guidance of $9-10million. For the third quarter the company expects a lower cash utilization of the range $6-$8 million due to a wide range of initiatives that have been implemented in the past three weeks. The company intends to cut down its operation costs to approximately $10 million as a way f trying to boost its cash balance. The plans are aimed at preserving the company’s ability to carry out strategic objectives that are currently being evaluated.
Delcath expects to make huge savings from marketing, administrative expenses and research development. The company estimates cash equivalents of about $28 million. The company shares traded a notch higher on October 1 after receiving good news for its experimental treatment of liver cancer. This is after FDA approved its new product ‘orphan drug’ that will be used for chemotherapy for liver cancer. Delcath has been seeking approval from FDA to be allowed to market Melblez in combination with Melblez kit chemotherapy delivery system for about two years. This is good news to the company’s investors and shareholders as revenue is expected to grow from the sale of the drug.
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