Drastic cost-cutting at Benitec
Thursday, 20 November, 2008
Benitec has taken the drastic step of retrenching its chief scientific officer, Dr Jason Smythe, to reduce overheads and cash burn.
Smythe, formerly CSO of the Australian Tissue Engineering Centre, only took up the position in October last year.
Benitec, which is developing RNAi-based therapeutics in association with several organisations, including the CSIRO, has also suspended various R&D projects and has retrenched several other staff members.
The company has long been involved in costly patent litigation, initiated by an earlier management board.
CEO Sue MacLeman said in a press release that the decision was “regrettable” but “both necessary and prudent” in the current funding environment.
"Given the unprecedented events we are witnessing in the global capital markets, we have made these difficult decisions to ensure Benitec has sufficient cash reserves to survive these challenging economic times," she said.
The company’s most recent quarterly cash report, issued on October 30 for the quarter ended September 30, showed it had $128,000 cash in hand and $941,000 in fixed deposits.
It recently announced raised almost $2 million in a share placement to major shareholder Dr Christopher Bremner.
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