Novelion Therapeutics Announces Cost Reduction Plans and Capital Structure Review
January 24 2018 - 4:01PM
Novelion Therapeutics
Inc. (NASDAQ:NVLN), a biopharmaceutical company
dedicated to developing new standards of care for individuals
living with rare metabolic diseases, today announced
significant cost reduction plans as it continues to manage its cash
resources and the effects of the delay and uncertainty of the
settlement of its Aegerion subsidiary with the U.S. Department of
Justice (DOJ) and the Securities and Exchange Commission
(SEC).
Chairman of the Board of Directors Jason M. Aryeh said,
“Unfortunately, our disappointing financial performance in 2017,
current cash position, expectations for cash use in 2018, and the
additional expenses, delays and uncertainty we’ve faced as part of
the DOJ and SEC investigations of our Aegerion subsidiary, prompted
difficult decisions regarding the use of our limited
resources.”
Mr. Aryeh continued, “In addition to these cost cuts, we plan to
review our capital structure in an attempt to leverage the
flexibility in our corporate and capital structures. We
believe that these initiatives are necessary to continue Novelion’s
vital commitment to our patients. We express our sincere gratitude
to the valued employees and families whose jobs were negatively
impacted.”
In addition to the workforce and other cost reductions, the
Company is pursuing licensing opportunities for its zuretinol drug
candidate designed to treat certain rare inherited forms of
blindness, that predominately affect children, due, in part, to the
aforementioned cash and capital structure challenges.
About Novelion Therapeutics
Novelion Therapeutics is a biopharmaceutical
company dedicated to developing new standards of care for
individuals living with rare metabolic diseases. Novelion has a
diversified commercial portfolio through its indirect subsidiary,
Aegerion Pharmaceuticals, Inc., which includes JUXTAPID® and
MYALEPT®. The company seeks to advance its portfolio of rare
disease therapies by investing in science and clinical
development.
Forward Looking Statements
Certain statements in this press release
constitute "forward-looking statements" within the meaning of
applicable laws and regulations and constitute "forward-looking
information" within the meaning of applicable Canadian securities
laws. Any statements contained herein which do not describe
historical facts, including statements regarding the DOJ and SEC
investigations, the anticipated results of the workforce reduction
and other cost control measures, including the impact on expenses,
our future expectation of cash use and review of our capital
structure, and our plans to seek licensing opportunities for
zuretinol, are forward-looking statements which involve risks and
uncertainties that could cause actual results to differ materially
from those discussed in such forward-looking statements. Such risks
and uncertainties include, among others, those risks identified in
our filings with the U.S. Securities and Exchange Commission (the
“SEC”), including under the heading "Risk Factors" in our Annual
Report on Form 10-K filed on March 30, 2017, our Quarterly Report
on Form 10-Q filed on November 9, 2017, and subsequent filings,
with the SEC, available on the SEC's website at www.sec.gov. Any
such risks and uncertainties could materially and adversely affect
our results of operations, profitability and its cash flows, which
would, in turn, have a significant and adverse impact on our stock
price. We caution you not to place undue reliance on any
forward-looking statements, which speak only as of the date they
are made. Except as required by law, we undertake no
obligation to update or revise the information contained in this
press release, whether as a result of new information, future
events or circumstances or otherwise.
Investors and others should note that we
communicate with our investors and the public using our company
website www.novelion.com, including, but not limited to, company
disclosures, investor presentations and FAQs, SEC filings, press
releases, public conference calls transcripts and webcast
transcripts. The information that we post on these websites could
be deemed to be material information. As a result, we encourage
investors, the media and others interested to review the
information that we post there on a regular basis. The contents of
our website shall not be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended.
CONTACT:
Amanda Murphy, Director, Investor Relations & Corporate
CommunicationsNovelion
Therapeutics857-242-5024amanda.murphy@novelion.com
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