This month, Peregrine Pharmaceuticals submitted a WARN notification with the state of California. Peregrine Pharmaceuticals is a clinic stage biopharmaceutical company that focuses on developing products to stimulate the immune system to fight cancer. On August 11, 2017, the company announced that it would be reducing its overall workforce by 60 employees. This is supported by the WARN notification submitted in California.
The reduction equates to 20% of the company’s staff. The strategic actions will be carried out to help the company reduce costs and position it to achieve overall profitability. The permanent layoffs will impact the city of Tustin and are expected to take place on October 9, 2017, according to the WARN notice.
Peregrine has reduced its research and development personnel by 50%. Now, it has just 11 employees in R&D. Avid Bioservices, which is a wholly owned subsidiary of Peregrine, has also been impacted by the layoffs. Avid’s workforce has been reduced by 20% to 184 employees. Selling, general and administrative personnel has been reduced by 8%.
The company expects the reductions to cost the company anywhere between $1.1 million and $1.7 million. These costs will likely be incurred during the second quarter of the 2018 fiscal year. The reductions will help the company save between $3.7 million and $4.3 million in fiscal year 2018. In fiscal year 2019, the reductions will lead to over $7 million in reduced annualized operating expenses.