BELLUS Health announces staff reductions to lower operating expenses
LAVAL, QC, March 12 /CNW Telbec/ - BELLUS Health Inc. (TSX: BLU)
announced today that it has reduced its workforce by approximately 45%,
effective immediately. It is expected that this current reduction in the
workforce and other related measures will result in annual savings of
approximately CDN$3.5 million. The current programs related to the Company's
existing product and product candidates will not be affected by the cuts,
which are being made primarily in basic research and research-related
functions, as well as support and administrative functions.
During the past year, capital markets have been characterized by
significant volatility and by a marked reduction in the ability of companies,
including biotechnology companies, to access markets for financing. The
layoffs announced today will help to reduce BELLUS Health's use of cash ("burn
rate"), which is one of the conditions precedent to securing additional the
financing from Victoria Square Ventures Inc. and FMRC Family Trust. As
announced in its year-end results news release dated February 26, 2009, FMRC
Family Trust and Victoria Square Ventures Inc. have each conditionally
committed to subscribe for securities of the Company subject to the fulfilment
of certain conditions set forth by each in letters delivered to BELLUS Health,
which commitments each expire on March 23, 2009.
About BELLUS Health
BELLUS Health is a global health company focused on the development and
commercialization of products to provide innovative health solutions to
address critical unmet needs.
To Contact BELLUS Health
For additional information on BELLUS Health, please call the Canada and
United States toll-free number 1-877-680-4500 or visit the Web Site at
www.bellushealth.com.
Certain statements contained in this news release, other than statements
of fact that are independently verifiable at the date hereof, may constitute
forward-looking statements. Such statements, based as they are on the current
expectations of management, inherently involve numerous risks and
uncertainties, known and unknown, many of which are beyond BELLUS Health
Inc.'s control. Such risks include but are not limited to: the ability to
obtain financing immediately in the current markets, the impact of general
economic conditions, general conditions in the pharmaceutical and/or
nutraceutical industry, changes in the regulatory environment in the
jurisdictions in which the BELLUS Health Group does business, stock market
volatility, the availability and terms of any financing, fluctuations in
costs, and changes to the competitive environment due to consolidation, that
actual results may vary once the final and quality-controlled verification of
data and analyses has been completed, as well as other risks disclosed in
public filings of BELLUS Health Inc. Consequently, actual future results may
differ materially from the anticipated results expressed in the
forward-looking statements. The reader should not place undue reliance, if
any, on any forward-looking statements included in this news release. These
statements speak only as of the date made and BELLUS Health Inc. is under no
obligation and disavows any intention to update or revise such statements as a
result of any event, circumstances or otherwise, unless required by applicable
legislation or regulation. Please see the Annual Information Form of BELLUS
Health Inc. for further risk factors that might affect the BELLUS Health Group
and its business.
For further information: Lise Hébert, Ph.D. Vice President, Corporate Communications, (450) 680-4572, lhebert@bellushealth.com
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