Interpace Diagnostics Implements Broad Based Efficiencies and Cost-Cutting Measures Resulting in Significant 2016 Savings
PARSIPPANY, N.J., March 23, 2016 /PRNewswire/ -- Interpace Diagnostics Group, Inc. (NASDAQ: IDXG) ("IDX") today reported the implementation of a broad-based program to maximize efficiencies and cut costs designed to improve cash flows and profitability while completing the transition to a standalone high-value molecular diagnostics business. Since the fourth quarter of 2015, the Company has been dedicated to simplifying its operating and capital structures, and reducing expenses across the entire organization. In November 2015, one month prior to the sale of the Company's Commercial Services ("CSO") segment, the Company's Board of Directors authorized a 36-person initial reduction in staff, consisting principally of the CSO workforce at that time. Since then, an additional reduction of 18 employees has taken place. Additionally, the Company has realigned its compensation structure, consolidated positions, eliminated programs and development plans that did not have near term benefits, and streamlined operating systems while reducing overhead. The Company expects to save annually approximately $11.5 million as a result of this realignment.
"The transition process from being a combined contract sales or CSO and molecular diagnostics business to a standalone fully integrated molecular diagnostics company is nearly complete," said Jack Stover, Interim President and Chief Executive Officer. "Our job now is to begin delivering consistent growth in our core molecular diagnostics business that we are confident is possible while continuing to focus on controlling costs."
About Interpace Diagnostics Group, Inc.
Interpace is focused on developing and commercializing molecular diagnostic tests, leveraging the latest technology and personalized medicine for better patient diagnosis and management. The Company currently has three commercialized molecular tests: PancraGen®, a pancreatic cyst molecular test that can aid in pancreatic cyst diagnosis and pancreatic cancer risk assessment; ThyGenX®, which assesses thyroid nodules for risk of malignancy; and ThyraMIR®, which assesses thyroid nodules risk of malignancy utilizing a proprietary gene expression assay. The Company's mission is to provide personalized medicine through molecular diagnostics and innovation to advance patient care based on rigorous science. For more information about Interpace, please visit www.interpacediagnostics.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, relating to our future financial and operating performance. Interpace Diagnostics Group (Interpace) has attempted to identify forward-looking statements by terminology including "believes," "estimates," "anticipates," "expects," "plans," "projects," "intends," "potential," "may," "could," "might," "will," "should," "approximately" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are based on current expectations, assumptions and uncertainties involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Interpace's control. These statements also involve known and unknown risks, uncertainties and other factors that may cause Interpace's actual results to be materially different from those expressed or implied by any forward-looking statement. Known and unknown risks, uncertainties and other factors include, but are not limited to, Interpace's ability to effectively implement its operational and leadership transition plans, the market's acceptance of Interpace's molecular diagnostic tests and Interpace's ability to secure additional business. Additionally, all forward-looking statements are subject to the risk factors detailed from time to time in Interpace's periodic filings with the Securities and Exchange Commission (SEC), including without limitation, the Annual Report on Form 10-K filed with the SEC on March 5, 2015 and in Interpace's Form 10-Q filed with the SEC on November 12, 2015. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, Interpace undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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SOURCE Interpace Diagnostics Group, Inc.
Released March 23, 2016