In a strategic move to reallocate its financial resources, Molecular Templates Inc. (NASDAQ:MTEM), a biopharmaceutical company, announced on Thursday a significant reduction in its workforce. The Board of Directors approved a plan to decrease the company's employee count by approximately 30%.
This decision is aimed at better positioning the organization for the future and supporting ongoing clinical studies of its drug candidates MT-6402, MT-8421, and MT-0169.
The company anticipates incurring pre-tax charges of around $100,000 associated with the workforce reduction. These costs largely pertain to legal fees and severance expenses. Molecular Templates expects to complete the reduction by the end of April 2024, with the financial impact of these one-time charges to be reflected in the second quarter of the financial year.
This reduction is part of Molecular Templates' efforts to extend its financial runway and focus on its core clinical programs. The company is actively developing novel treatments in the oncology sector and the restructuring is seen as a necessary step to sustain its clinical development activities.
The information reported is based on a statement from a recent SEC filing by Molecular Templates.
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