THE WOODLANDS, TX / ACCESSWIRE / November 2, 2016 /
Opexa Therapeutics, Inc. (NASDAQ: OPXA), a company developing
personalized immunotherapies for autoimmune disorders, including
multiple sclerosis (MS) and neuromyelitis optica (NMO), today announced
that it was implementing an approximately 40% reduction to the Company's
current workforce in order to reduce operating expenses and conserve
cash resources. The move comes as the Company recently announced that
the Phase 2b Abili-T clinical trial designed to evaluate the efficacy
and safety of Tcelna® (imilecleucel-T) in patients with secondary
progressive multiple sclerosis (SPMS) did not meet its primary endpoint
of reduction in brain volume change (atrophy), nor did it meet the
secondary endpoint of reduction of the rate of sustained disease
The Company estimates that it will incur incremental aggregate cash
charges of approximately $95,000 associated with this current workforce
reduction. Moreover, the Company expects that additional restructuring
will occur by year-end.
Additionally, the Company has accepted the resignations of Ms. Donna
Rill, Opexa's Chief Development Officer, and Mr. Scott Seaman, a member
of the Company's Board of Directors. Ms. Rill, who is leaving to pursue
other career opportunities, will depart as of November 4, 2016.
"This reduction in force is a difficult but necessary step as a
result of the disappointing results of our lead product candidate,
Tcelna, announced last week," said Neil K. Warma, President and Chief
Executive Officer of Opexa. "I would like to personally express my
appreciation to each of the employees impacted by this decision for
their commitment to Tcelna and Opexa. The Opexa team has endeavored to
increase the understanding of secondary progressive multiple sclerosis,
and we hope our work will contribute to the development of a safe and
effective therapy for this devastating disease. I would also like to
thank Scott Seaman for his long-time service as a Director of Opexa and
note our special heartfelt appreciation of Donna Rill who has dedicated
over 15 years to Opexa."
About Opexa Therapeutics
Opexa Therapeutics is a biopharmaceutical company developing
personalized immunotherapies based on ImmPath®, its proprietary T-cell
technology, with the potential to treat autoimmune diseases. Opexa's
staff of cell therapy experts operates in a stand-alone facility located
on one acre in the Woodlands, Texas. The facility is comprised of over
10,000 sq. ft. of state of the art space for cGMP manufacturing suites, a
quality control laboratory, a research and development laboratory,
quality assurance, specialized flow cytometry, a microscopy lab and
clinical and regulatory affairs, as well as warehouse space for
materials management. Opexa's patent estate is currently comprised of
over 160 issued patents (domestic and international).
For more information, please visit Opexa Therapeutics' website at www.opexatherapeutics.com or follow company news on Twitter via @OpexaCEO or LinkedIn.
Cautionary Statement Relating to Forward-Looking Information for the
Purpose of "Safe Harbor" Provisions of the Private Securities Litigation
Reform Act of 1995.
Statements contained in this report, other than statements of
historical fact, constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The
words "expects," "believes," "may," "intends," "potential," "should,"
and similar expressions are intended to identify forward-looking
statements. These forward-looking statements do not constitute
guarantees of future performance. Investors are cautioned that
forward-looking statements, including without limitation statements
regarding the reduction-in-workforce and the anticipated future
reduction in operating expenses and cash conservation benefits
associated therewith, and the future charges expected to be incurred,
constitute forward-looking statements. These forward-looking statements
are based upon the Company's current expectations and involve
assumptions that may never materialize or may prove to be incorrect.
Actual results and the timing of events could differ materially from
those anticipated in such forward-looking statements as a result of
various risks and uncertainties, which include without limitation risks
and uncertainties associated with possible changes in the magnitude of
the planned workforce reduction, including as a result of changes that
may occur in the Company's operations or operating plan, or other
reasons or events, possible changes in the amount of charges and cash
payments associated with the workforce reduction, including the
possibility that the Company may incur unanticipated charges or make
cash payments that are not currently contemplated, and the Company's
ability to reduce its operating expenses and conserve cash on a net
basis as a result of the workforce reduction. These and other risks are
described in detail in the Company's SEC filings, including its Annual
Report on Form 10-K for the year ended December 31, 2015 and its
Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. All
forward-looking statements contained in this report speak only as of the
date on which they were first made by the Company, and the Company
undertakes no obligation to update such statements to reflect events
that occur or circumstances that exist after such date.
Neil K. Warma
Opexa Therapeutics, Inc.
Chief Executive Officer
SOURCE: Opexa Therapeutics, Inc.