Ocular Therapeutix announced an operational restructuring plan that the company says is expected to result in an estimated $11 million in annualized savings through personnel reductions and approximately $14 million in one-time program deferrals. The company estimates that it will record costs associated with the restructuring of approximately $0.7 million in the fourth quarter.
The restructuring represents a strategic realignment and commitment by the company to allocate capital and resources to maximize the commercial opportunity of Dextenza and focus resources on progressing key pipeline assets, including completion of its Dextenza phase 3 trial in allergic conjunctivitis and completion of phase 1 trials of OTX-TIC for the treatment of glaucoma and ocular hypertension and OTX-TKI for the treatment of wet age-related macular degeneration (AMD). The company believes the savings, combined with projected sales of Dextenza and cash and cash equivalents, will result in an extension of the company’s current cash runway through the fourth quarter of 2020.
“We have elected to restructure Ocular in order to maximize the opportunity we have with Dextenza and our pipeline,” Antony Mattessich, President and Chief Executive Officer, said in a company news release. “We will use a portion of the savings generated to increase the size of our commercial field force to broaden our national reach and increase Dextenza promotional capabilities. Additionally, the savings are anticipated to extend our cash runway through the end of 2020 and provide an improved financial position as we build the company for the long term.”