Xcorporeal, Inc. Streamlines Operations
March 16 2009 - 4:30PM
Business Wire
Xcorporeal, Inc. (NYSE Amex:XCR) announced today that, as a
result of general economic conditions and a deterioration in its
liquidity position, it has streamlined its operations through a
series of initiatives designed to reduce annual expenses by
approximately $3.5 million to a current operating burn rate of
approximately $200,000 per month. The decrease in operating
expenses will primarily come from the reduction in personnel. On
March 13, 2009, the Company terminated 19 employees, or 73% of its
staff. The Company also intends to take additional actions to
minimize or defer operating expenses.
The Company also announced that it is currently exploring
various strategic alternatives, which may include the license of
certain of the Company�s intellectual property rights as a means to
further develop its technologies, among other possible
transactions.
About Xcorporeal, Inc.
Xcorporeal, Inc. is a medical device company developing an
innovative extra-corporeal platform technology to be used in
devices to replace the function of various human organs. The
platform leads to three initial products: a Portable Artificial
Kidney (PAK) for hospital based Renal Replacement Therapy, the
XCR-6 for home hemodialysis, and a Wearable Artificial Kidney (WAK)
for continuous ambulatory hemodialysis.
For the hospital market, Xcorporeal is developing a portable,
multi-functional renal replacement device that will offer
cost-effective therapy for those patients suffering from Acute
Renal Failure, which causes a rapid decline in kidney function. In
the U.S., the disease affects more than 200,000 patients annually
with a mortality rate approaching 50%, according to a study
published in the Clinical Journal of American Society of Nephrology
in 2006. The Company has completed functional prototypes of
subsystems, which are currently undergoing bench testing.
The Company also plans to commercialize the XCR-6, a home
hemodialysis device, for the chronic End Stage Renal Disease (ESRD)
market, comprised of patients in whom the kidneys have ceased to
function. The Company�s devices are intended to combine the best
attributes of currently marketed home hemodialysis machines to
offer patients convenient, durable and truly portable treatments at
home. The Company believes its devices will provide a
cost-effective alternative to current home treatment modalities,
due to their ability to offer hemodialysis without the need for
large quantities of dialysate fluid or purified water. The Company
has also completed a demonstration prototype of the XCR-6.
The Company�s WAK is also a device for the chronic treatment of
ESRD. The Company has successfully demonstrated a prototype system
that weighs less than 6 kg., is battery operated, and can be worn
by an ambulatory patient. This miniature, wearable device is
intended to enable continuous (up to 24 hours � 7 days per week)
renal replacement therapy at home. Increasing dialysis time has
previously been shown to reduce morbidity and improve quality of
life of ESRD patients. The WAK has been featured in articles
written in periodicals worldwide such as the Los Angeles Times, Le
Figaro, Frankfurter Algemeiner and Corriere dela Sera. Scientific
papers discussing the WAK have been published in several peer
reviewed journals, including The Lancet and Kidney
International.
Additional Company information may be found on its website at:
www.xcorporeal.com.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed
in this press release are forward looking and made pursuant to the
Safe Harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements reflect numerous
assumptions and involve a variety of risks and uncertainties, many
of which are beyond the company's control, that may cause actual
results to differ materially from stated expectations. These risk
factors include, among others, limited operating history,
difficulty in developing, exploiting and protecting proprietary
technologies, the risk that our technology may not be effective,
the risk that we may not have sufficient financial resources to
adequately finance the development activities described in the
press release, uncertainty as to the outcome of arbitration and
legal proceedings, intense competition and substantial regulation
in the medical device industry, and additional risk factors as
discussed in the reports filed by the Company with the Securities
and Exchange Commission, which are available on its website at
http://www.sec.gov.
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