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Print Edition StoriesMonday, November 9, 2009
GTC Biotherapeutics execs land retention pay amid layoffs
By Julie M. Donnelly and Craig M. Douglas
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Struggling drug developer GTC Biotherapeutics Inc. plans to cut 45 employees, or a third of its entire work force. Meanwhile, GTC has lined up $270,000 in “retention” payments for its senior executive team if the individuals stay with the cash-strapped company beyond March 31.
The cash payments also kick in if the executives in question are terminated before that date.
The named executives and potential retention payments are as follows:
* Chairman and CEO Geoffrey F. Cox stands to receive $94,000
* Chief Financial Officer John B. Green stands to receive $44,000
* Harry M. Meade, head of GTC’s research and development, stands to receive $44,000
* Richard Scotland, head of regulatory affairs, stands to receive $44,000
* Daniel S. Woloshen, the company’s general counselstands to receive $44,000
GTC employed 154 people before Monday’s announced cuts. CEO Cox said in a statement that the move would save the company between $5 million and $6 million annually.
On Nov. 6, GTC said it will likely run out of cash before March 1 unless new revenue or financing opportunities arise before then. The Framingham-based developer of drug therapies derived from animal proteins recently closed a $10 million financing round from strategic shareholder LFB Biotechnologies, a France-based drug maker, that brought its total cash position to around $11.8 million.
GTC booked $749,000 in revenue in the third quarter, down from the $2.9 million generated a year earlier. The company’s net loss for the quarter was $5.1 million, compared with $6.1 million in 2008’s corresponding period.
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