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SYGNIS Pharma AG announces restructuring

SYGNIS Pharma AG (Frankfurt: LIO; ISIN DE0005043509; Prime Standard) announced today a comprehensive, strategic restructuring of the company, which will include significant personnel and cost reductions. The process has been approved by the Supervisory Board and will be executed immediately.

The purpose of the restructuring is to reduce the long-term costs of the company and to maintain a strategic focus on the company’s current projects. These include the clinical development of its lead compound AX200 for the treatment of acute stroke, which is currently in a phase II efficacy trial (AXIS 2).

The total number of employees will be reduced from 51 to 32 (the equivalent of 21 full time employees). The core pre-clinical and clinical development teams will remain in place to complete ongoing AX200 development work as well as research on the KIBRA pathway.

Related to the restructuring, the company expects a one-time expenditure of up to half a million euros, which will occur in full in the fiscal year 2010/11. Additional non-cash related expenses of up to 2.5 million euros could occur with regard to an impairment of intangible assets.

With the reduced cost-base and the current liquidity, it is expected that SYGNIS will have sufficient funds to support the completion of the ongoing phase II efficacy study of AX200. In addition, the company has access to an equity-line via Yorkville Advisors, which will further strengthen SYGNIS’ financial base. The board believes the new structure of the company will position it more favourably for potential future strategic transactions.

Dr. Alfred Bach resigns as CEO of SYGNIS Pharma

By mutual consent with the Supervisory Board, Dr. Alfred Bach resigned as CEO of SYGNIS Pharma AG on 28th October 2010, but will continue to support the company. The management contract of Dr. Alfred Bach, which was going to expire at the end of the calendar year, will not, upon Dr. Bach’s request, be extended.

Peter Willinger, Chief Financial Officer, and Dr. Frank Rathgeb, Chief Medical Officer, will jointly lead the company.

Further information

Dr. Franz-Werner Haas
VP Operations / General Counsel
Tel.: +49 (0) 6221-454 812
E-mail: franz-werner.haas(at)sygnis.de
Website address: https://www.gesundheitsindustrie-bw.de/en/article/press-release/sygnis-pharma-ag-announces-restructuring