MONTREAL, CANADA--(Marketwired - Apr 3, 2013) - Theratechnologies Inc. (TH.TO) today announced the signature of an amended lease agreement with its lessor which will result in a 1.2 million dollar annual reduction of its lease-related expenses.
These new terms, effective for five years, reduce by 85 percent lease-related expenses for Theratechnologies' office space. Total office space rented by Theratechnologies goes down from 36,400 square feet to 5,000 square feet.
This amended agreement also allows to reduce by approximately 3 million dollars a lease-related provision which was calculated in the company's financial statement. This reduction takes into account a lease renegotiation fee of approximately 2 million dollars.
"The signing of this amended lease convention allows us to accomplish several objectives including bringing us closer to becoming cash neutral by substantially reducing our expenses and that of reducing the length of our lease obligations," said Luc Tanguay, President and CEO, Theratechnologies.
Theratechnologies (TH.TO) is a biopharmaceutical company that specializes in innovative therapeutic peptide products, with an emphasis on growth-hormone releasing factor peptides. Further information about Theratechnologies is available on the Company's website at www.theratech.com, on SEDAR at www.sedar.com and on the Securities and Exchange Commission's website at www.sec.gov.
This press release contains certain statements that are considered "forward-looking information" within the meaning of applicable securities legislation, which statements may contain such words as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions. This forward-looking information includes, but in not limited to, information on Theratechnologies becoming cash neutral.
Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Theratechnologies' control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These assumptions include, but are not limited to, the fact that Theratechnologies will be able to control its expenses, that sales of EGRIFTA™ in the United States will not decrease and that pending regulatory submissions for tesamorelin in the treatment of excess abdominal fat in HIV-infected patients with lipodystrophy will be approved. Risks and uncertainties include, but are not limited to, the fact that unexpected expenses may be incurred, that EGRIFTA™ sales in the United States decrease or that pending regulatory submissions may not be approved.
We refer potential investors to the "Risks Factors" section of our Annual Report on Form 20-F dated February 26, 2013 available at www.sedar.com, www.sec.gov and www.theratech.com. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on forward-looking statements. Forward-looking statements reflect current expectations regarding future events and speak only as of the date of this press release and represent our expectations as of that date.
Theratechnologies undertakes 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, except as may be required by applicable laws.