| Core Programs Maintained; Projected 2010 Savings of $9-10 MillionBOONTON, N.J, Dec 09, 2009 (BUSINESS WIRE) -- Unigene Laboratories, Inc. (OTCBB:UGNE) (http://www.unigene.com)
has announced a restructuring plan that includes a reduction in
workforce to improve operational efficiencies and to better match
resources with market demand and the Company's strategic objectives.
Under the comprehensive plan, Unigene will continue Fortical(R)
production and will maintain all of its core programs and partnered
activities while decreasing operating expenses by approximately $9-10
million for 2010. Since Unigene currently maintains an adequate
inventory of calcitonin and enzyme to support Fortical(R), the
Company will temporarily suspend manufacturing of those materials at its
Boonton facility. However, the Company will maintain the cGMP status of
the facility and the ability to manufacture peptides at that location.
Implementation of the plan will result in an immediate company-wide
workforce reduction of approximately one-third. The plan further
provides for salary reductions at all levels, including senior
management, and other cost savings.
"This decision will allow us to better focus on our current needs while
operating more efficiently and significantly reducing our burn rate,"
said Warren P. Levy, President and Chief Executive Officer of Unigene.
"We believe that these steps will enable us to meet the challenging
demands of the current economic environment, thereby better positioning
us to meet our corporate goals and increase shareholder value."
About Unigene
Unigene Laboratories, Inc. is a biopharmaceutical company
focusing on the oral and nasal delivery of large-market peptide drugs.
Due to the size of the worldwide osteoporosis market, Unigene is
targeting its initial efforts on developing calcitonin and PTH-based
therapies. Fortical(R), Unigene's nasal calcitonin product for
the treatment of postmenopausal osteoporosis, received FDA approval and
was launched in 2005. Unigene has licensed the U.S. rights for Fortical
to Upsher-Smith Laboratories, worldwide rights for its oral PTH
technology to GlaxoSmithKline, worldwide rights for its calcitonin
manufacturing technology to Novartis and worldwide rights (except for
China) for its oral calcitonin program to Tarsa Therapeutics, Inc.
Unigene's patented oral delivery technology has successfully delivered,
in preclinical and/or clinical trials, various peptides including
calcitonin and PTH analogs. Unigene's patented manufacturing technology
is designed to cost-effectively produce peptides in quantities
sufficient to support their worldwide commercialization as oral or nasal
therapeutics. For more information about Unigene, call (973) 265-1100 or
visit www.unigene.com.
For information about Fortical, visit www.fortical.com.
Safe Harbor statements under the Private Securities Litigation Reform
Act of 1995: This press release contains forward-looking statements
regarding us and our business, financial condition, results of
operations and prospects.Such forward-looking statements include
those which express plans, anticipation, intent, contingency, goals,
targets or future development and/or otherwise are not statements of
historical fact.We have based these forward-looking statements
on our current expectations and projections about future events and they
are subject to risks and uncertainties known and unknown which could
cause actual results and developments to differ materially from those
expressed or implied in such statements.These forward-looking
statements include statements about the following:general
economic and business conditions, our financial condition, competition,
our dependence on other companies to commercialize, manufacture and sell
products using our technologies, the ability of our products to gain
market acceptance and increase market share, the uncertainty of results
of animal and human testing, the risk of product liability and liability
for human trials, our dependence on patents and other proprietary
rights, dependence on key management officials, the availability and
cost of capital, the availability of qualified personnel, changes in, or
the failure to comply with, governmental regulations, the failure to
obtain regulatory approvals for our products and other risk factors
discussed in our Securities and Exchange Commission filings. Words such
as "anticipates," "expects," "intends," "plans," "predicts," "believes,"
"seeks," "estimates," "may," "will," "should," "would," "potential,"
"continue," and variations of these words (or negatives of these words)
or similar expressions, are intended to identify forward-looking
statements. In addition, any statements that refer to expectations,
projections, or other characterizations of future events or
circumstances, including any underlying assumptions, are forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to certain risks, uncertainties, and
assumptions that are difficult to predict. Therefore, our actual results
could differ materially and adversely from those expressed in any
forward-looking statements as a result of various risk factors.
SOURCE: Unigene Laboratories, Inc.
Investor Contact:
The Investor Relations Group
Erika Moran/Dian Griesel, Ph.D.
Media Contact: Janet Vasquez
Phone: 212-825-3210
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