Readers are referred to the cautionary notes regarding Forward-looking Information and non-IFRS Financial Measures at the end of this release. Unless noted otherwise, all dollar amounts are in U.S. dollars.
TORONTO & WINNIPEG, Jan. 5, 2012 /CNW/ - Cangene Corporation (Cangene) today announces changes to its senior management team and a workforce reduction. The reorganization outlined below is intended to create greater alignment with the Company's strategy and optimize operating efficiencies. The financial impact of these changes in the current fiscal year is expected to be neutral with the cost savings being offset by severance costs. The expected future annualized savings are estimated to be in the range of $6 million to $7 million. It is expected that these changes will better position the Company for future growth and sustained profitability.
Senior Management Changes
The senior management team has been reorganized and is now composed of the following individuals who will report directly to the President and CEO:
- Gary Floyd was appointed to the new position of Chief Operating Officer and will oversee the operations of the Company in all locations. Continuing in their respective roles and reporting to Mr. Floyd are: Andrew Storey, Senior Vice President, Quality and Regulatory Affairs; Vicki Wolff-Long, General Manager, Cangene bioPharma, Inc.; Jeannette Rosolowich, Director, Project Management; and Karen Clifford, Director, Plasma Operations.
- Laura Saward, Director, Research & Development will lead the Company's R&D efforts.
- Les Deezar assumes the position of Director, Human Resources.
- Michael Graham, Chief Financial Officer; Paul Brisebois, Vice President, Commercial Development; and Francis St.Hilaire, General Counsel and Secretary, will continue in their respective roles on the senior management team.
Departing Cangene are: William Bees, Senior Vice President, Operations and Grant McClarty, Vice President, Research & Development. "I would like to personally thank Bill and Grant for their contributions to this organization," says John Sedor, President and CEO of Cangene.
In addition to the senior management changes described above, Cangene will reduce its workforce from approximately 700 to 580 positions, representing a change of about 17% that includes the elimination of vacant positions. Cangene is providing affected employees with severance and outplacement services in keeping with its policies, local laws and regulations.
The workforce reduction is believed to be a prudent and necessary step for the long term success of the Company. "Aligning our workforce with our strategic focus on commercial products is a top priority and is expected to help Cangene drive value for its stakeholders," says Mr. Sedor. "Unfortunately, these changes affect talented people who have made important contributions to our organization. It's never easy to make this type of decision, but it was necessary to better position the Company for continued success," he adds.
About Cangene Corporation
Cangene Corporation (TSX: CNJ), headquartered in Winnipeg, Canada, is one of the nation's oldest and largest biopharmaceutical companies. It is focused on the development and commercialization of immune therapeutics. Cangene's products are sold worldwide and include products that have been accepted into the U.S. Strategic National Stockpile. Cangene has employees in six locations across North America. It operates manufacturing facilities in Winnipeg, Manitoba and Baltimore, Maryland (through its wholly-owned subsidiary, Cangene bioPharma, Inc.) where it produces its own products and undertakes contract manufacturing for a number of customers. Cangene operates three U.S. and one Canadian plasma-collection facilities operating under the name Cangene Plasma Resources. For more information about Cangene, visit the Company's website at www.cangene.com.
Cautionary Note regarding Forward-Looking Information
This document contains forward-looking statements about the Corporation, including its business operations, strategy, and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "intends", "plans", "will", "believes", "estimates", or negative versions thereof, and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, future use, safety and efficacy of unapproved products or unapproved uses of products, and possible future action by the Corporation are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Corporation, economic factors and the biopharmaceutical industry generally. They are not guarantees of future performance. Actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation due to, but not limited to, important factors such as sales levels; fluctuations in operating results; the Corporation's reliance on a small number of customers including government organizations; the demand for new products and the impact of competitive products, service and pricing; the availability and cost of raw materials, and in particular, the cost, availability and antibody concentration in plasma; progress and cost of clinical trials; costs and possible development delays resulting from use of legal, regulatory or legislative strategies by the Company's competitors; uncertainty related to intellectual property protection and potential costs associated with its defence as well as general economic, political and market factors in North America and internationally; interest and foreign exchange rates; business competition; technological change; changes in government action, policies or regulations; decisions by Health Canada, the United States Food and Drug Administration and other regulatory authorities regarding whether and when to approve drug applications that have been or may be filed, as well as their decisions regarding labeling and other matters that could affect the availability or commercial potential of drug candidates; unexpected judicial or regulatory proceedings; catastrophic events; the Corporation's ability to complete strategic transactions; and other factors beyond the control of management.
The reader is cautioned that the foregoing list of important factors is not exhaustive and there may be other factors listed in other filings with securities regulators, including factors set out under "Risk and Uncertainties" in the Corporation's Management Discussion and Analysis, which, along with other filings, is available for review at www.sedar.com. The reader is also cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Corporation has no intention to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Cautionary Note Regarding Non-IFRS Financial Measures
This news release may contain non-IFRS financial measures. Terms by which non-IFRS financial measures are identified include but are not limited to "net cash", "total assets", "sales" and other similar expressions. Non-IFRS financial measures are used to provide management and investors with additional measures of performance. However, non-IFRS financial measures do not have standard meanings prescribed by IFRS and are not directly comparable to similar measures used by other companies. Please refer to the appropriate reconciliations of these non-IFRS financial measures to measures prescribed by IFRS.
For further information:
Michael Graham, Chief Financial Officer
Ph: (204) 275-4040 or E-mail: [email protected]