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Delcath Systems announces strategic reorganization, to elimate 21 positions

Delcath Systems announced that as part of its efforts to increase operating efficiencies, the company has completed a strategic reorganization under which it has eliminated 21 positions, or approximately 33% of its global workforce. The company expects this reorganization, in conjunction with other cost saving measures, to significantly lower cash utilization. For Q3, the company expects cash utilization to be between $7M-8M, as compared to its previous guidance of $9M-10M for the period. For Q4, the company currently expects cash utilization to be at the lower end of its previous guidance of $6M-8M. Additionally, as a result of the initiatives implemented over the past three weeks, the Company expects to reduce annual operating costs by approximately $10M. Most of the savings are expected to come from marketing, administrative expenses and research and development. As of September 30, the company estimates cash and cash equivalents of approximately $28M.