Business
BELLUS Health announces staff reductions to lower operating expenses
LAVAL, QC, March 12 /CNW Telbec/ - BELLUS Health Inc. (TSX: BLU) announced today that it has redu...
About this update from Bluenergies Ltd.
[{"type":"text","content":"\n\n\n\nLAVAL, QC, March 12 /CNW Telbec/ - BELLUS Health Inc. (TSX: BLU)\nannounced today that it has reduced its workforce by approximately 45%,\neffective immediately. It is expected that this current reduction in the\nworkforce and other related measures will result in annual savings of\napproximately CDN$3.5 million. The current programs related to the Company's\nexisting product and product candidates will not be affected by the cuts,\nwhich are being made primarily in basic research and research-related\nfunctions, as well as support and administrative functions.\n\n\nDuring the past year, capital markets have been characterized by\nsignificant volatility and by a marked reduction in the ability of companies,\nincluding biotechnology companies, to access markets for financing. The\nlayoffs announced today will help to reduce BELLUS Health's use of cash ("burn\nrate"), which is one of the conditions precedent to securing additional the\nfinancing from Victoria Square Ventures Inc. and FMRC Family Trust. As\nannounced in its year-end results news release dated February 26, 2009, FMRC\nFamily Trust and Victoria Square Ventures Inc. have each conditionally\ncommitted to subscribe for securities of the Company subject to the fulfilment\nof certain conditions set forth by each in letters delivered to BELLUS Health,\nwhich commitments each expire on March 23, 2009.\n\n\nAbout BELLUS Health\n\n\nBELLUS Health is a global health company focused on the development and\ncommercialization of products to provide innovative health solutions to\naddress critical unmet needs.\n\n\nTo Contact BELLUS Health\n\n\nFor additional information on BELLUS Health, please call the Canada and\nUnited States toll-free number 1-877-680-4500 or visit the Web Site at\nwww.bellushealth.com.\n\n\nCertain statements contained in this news release, other than statements\nof fact that are independently verifiable at the date hereof, may constitute\nforward-looking statements. Such statements, based as they are on the current\nexpectations of management, inherently involve numerous risks and\nuncertainties, known and unknown, many of which are beyond BELLUS Health\nInc.'s control. Such risks include but are not limited to: the ability to\nobtain financing immediately in the current markets, the impact of general\neconomic conditions, general conditio...