Societal CDMO Announces Corporate Restructuring
SAN DIEGO and GAINESVILLE, Ga., Sept. 20, 2023 (GLOBE NEWSWIRE) -- Societal CDMO, Inc. (“Societal CDMO”; NASDAQ: SCTL), a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges primarily in small molecule therapeutic development, today announced a strategic restructuring plan to streamline and optimize operations.
Following the completion of a comprehensive review of its operations, Societal has reduced its workforce by 26 positions (9%) across all aspects of the business, effective September 20, 2023. It also has eliminated nine open positions. These moves are expected to result in annualized savings of approximately $5.5 million. A significant majority of the cuts will impact the portion of the business supporting earlier-stage services, which are most acutely affected by the current financing environment.
“Our executive team, in collaboration with our board of directors, has executed a careful review of our current operations and resources and determined that this strategic realignment is essential at this time. Industry-wide funding challenges, which are particularly impacting early-stage drug development, dictate that we reduce our infrastructure in areas that support companies most affected by this slowdown. Taking these difficult but important steps will enable us to increase our operational efficiency, especially in areas that historically have been our greatest strengths. Additionally, this restructuring will bolster our ability to achieve our growth strategies and continue to deliver on our commitment to playing a key role in bringing important medicines to patients,” said David Enloe, chief executive officer of Societal CDMO. “We are deeply appreciative of the tireless commitment of all our team members, and extend a heartfelt thank you for the essential contributions made by those that are impacted by this restructuring.”
To further support this organizational realignment, Societal has appointed Wayne Weisman, our current chairman, as executive chairman of the board of directors. Appointing Mr. Weisman as executive chairmn will enable him, along with the support of the board, to provide more direct oversight on the implementation and execution of the corporate strategy.
“I am pleased to assume the role of executive chairman and further support our management as it navigates today’s challenging financial environment. I, as well as the other members of the Societal board of directors, have an excellent working relationship with our management team, and I appreciate the opportunity to expand our engagement on these strategic matters,” stated Mr. Weisman.
About Societal CDMO
In addition to our experience in handling DEA controlled substances and developing and manufacturing modified-release dosage forms, Societal CDMO has the expertise to deliver on our clients’ pharmaceutical development and manufacturing projects, regardless of complexity level. We do all of this in our best-in-class facilities, which total 145,000 square feet, in Gainesville, Georgia and San Diego, California.
Societal CDMO: Bringing Science to Society. For more information about Societal CDMO’s customer solutions, visit societalcdmo.com.
Contacts: Stephanie Diaz (Investors) Vida Strategic Partners 415-675-7401 [email protected] Tim Brons (Media) Vida Strategic Partners 415-675-7402 [email protected] Ryan D. Lake (CFO) Societal CDMO 770-531-8365 [email protected]
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