Synta Pharmaceuticals Corp. (NASDAQ:SNTA) announced financial results for the recently concluded 3Q2015. As per the reports, the biggest highlight was its announcement to fire almost 60% of its full-time employees due to revenue pressure.
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Going forward, not more than 33 full-time employees will work for Synta Pharmaceuticals. As a result of this restructuring, Synta Pharmaceuticals will manage to save about $8 million compensation related cost. Cash payments related to workforce reduction, benefits continuation costs, unused vacation payments and outplacement services, etc. will revolve in a range of $2.5 million to $2.6 million.
When it comes to financial performance, Synta couldn’t generate any revenues in the third quarter. R&D expenses for the three-month period were $14.4 million as compared to $16.2 million that it incurred during the same period in the last year. General and Administrative expenses for the quarter were $3 million compared to last year’s $3.2 million.
Despite continuous hard work, Synta reported the net loss of $0.13 per share or $17.6 million in total as compared to net loss of $0.19 per share or $20 million during the same period in the previous year. It had filed Form 10-Q recently, which could be referred as to get detailed information about revenues, income and expenses incurred during the 3Q2015.
The senior management team of the Synta Pharmaceuticals was confident that the company would improve its performance in the coming quarters. According to Chen Schor, CEO, Synta Pharmaceuticals Corp. (NASDAQ:SNTA), the company has taken many innovative steps lately, including Phase 3 GALAXY-2 trial of the ganetespib the case of lung cancer. The outcome of these trials is promising and good enough for the R&D team to pursue the same path.
Going forward, it will make necessary changes in corporate and operational strategy to attain a profitable position as soon as possible, details of which will be announced from time to time.
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