As a result of an in-depth review of the company’s research &
development portfolio, InVivo Therapeutics has announced that the
company is realigning resources behind its novel Neuro-Spinal Scaffold
and the Neuro-Spinal Scaffold Plus Stem Cells program for spinal cord
injury (SCI). Resources currently deployed towards InVivo’s hydrogel
drug delivery program will be eliminated. The hydrogel platform was at
an early stage of preclinical development, and substantial financial and
human resources would have been required to address technical and
competitive challenges and to advance any drug delivery product to the
partnering stage or into the clinic. The company indicated that one
element of the hydrogel platform will be further explored, the potential
of hydrogel for cell delivery, as part of an expanded biomaterials
development program for the delivery of stem cells.
In announcing the refocusing of the company’s R&D resources, InVivo
further announced it is making a reduction in force (RIF) of 14
employees, or 28% of its workforce. The RIF and the shifting of R&D
resources is expected to result in annualized savings of approximately
$3 million and to reduce cash expenditures by approximately 23% compared
to 2013 levels. With these savings, InVivo anticipates that existing
funds will be sufficient to support its planned activities through March
2016.
“Although reducing staff size and eliminating the hydrogel drug delivery
program were difficult decisions, InVivo’s focus will be even stronger
on the company’s core mission: developing meaningful treatments for
spinal cord injury,” CEO Mark Perrin said. “Going forward, all of the
company’s resources and efforts will be centered on the development of
the Neuro-Spinal Scaffold for acute SCI and Scaffolds Plus Stem Cells
for the treatment of chronic SCI. This focus will allow InVivo to
advance the spinal cord injury programs without distraction and in a
more financially efficient manner. Developing effective spinal cord
injury treatments is a challenging task, and our renewed focus maximizes
the potential for patients and shareholders to benefit from the major
advancements that have been and continue to be made by the InVivo team.”
Highlights of the R&D Realignment
Staff reduction and elimination of hydrogel drug delivery program will
allow InVivo to:
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Focus on the mission of the company: to develop treatments for spinal
cord injury
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Deliver on the founding premise and promise of the company
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Maximize probability of success for spinal cord programs by minimizing
distraction
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Maximize strategic and financial flexibility by reducing cash burn
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Maximize probability of success in bringing a product to market and
benefiting patients
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Demonstrate clear commitment to the spinal cord injury community
About InVivo Therapeutics
InVivo Therapeutics Holdings Corp. is a pioneering biomaterials and
biotechnology company with a focus on treatment of spinal cord injuries.
The company was founded in 2005 with proprietary technology co-invented
by Robert Langer, ScD., Professor at Massachusetts Institute of
Technology, and Joseph P. Vacanti, M.D., who is affiliated with
Massachusetts General Hospital. In 2011 the Company earned the David S.
Apple Award from the American Spinal Injury Association for its
outstanding contribution to spinal cord injury medicine. The publicly
traded company is headquartered in Cambridge, MA. For more details,
visit, www.invivotherapeutics.com.
Safe Harbor Statement
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements within the
meaning of the federal securities laws. These statements can be
identified by words such as "believe," "anticipate," "intend,"
"estimate," "will," "may," "should," "expect" and
similar expressions, and include statements regarding the Company’s
expectations with respect to anticipated cost savings from its R&D
realignment, anticipated reduction in its use of cash resulting from the
R&D realignment and the Company’s ability to advance its spinal cord
injury programs in a financially efficient manner. Any forward-looking
statements contained herein are based on current expectations, estimates
and projections about the Company’s business based, in part, on
assumptions made by management and are subject to a number of risks and
uncertainties. Factors that could cause actual future results to differ
materially from current expectations include, but are not limited to,
risks and uncertainties relating to possible changes in the expected
costs and charges associated with the reduction in force; the Company’s
ability to achieve the expected benefits of the R&D realignment; the
Company’s ability to develop, market and sell products based on its
technology; the expected benefits and efficacy of the Company’s products
and technology in connection with spinal cord injuries; the availability
of substantial additional funding for the Company to continue its
operations and to conduct research and development, clinical studies and
future product commercialization; and other risks associated with the
Company’s business, research, product development, regulatory approval,
marketing and distribution plans and strategies identified and described
in more detail in our Annual Report on Form 10-K for the year ended
December 31, 2013, as amended and our other filings with the SEC,
including our Form 10-Qs and our current reports on Form 8-K. We do not
undertake to update these forward-looking statements made by us.
Copyright Business Wire 2014