RTTNews | Jun 28, 2021 01:11AM EDT

01:11 Monday, June 28, 2021 (RTTNews.com) - Orphazyme A/S' (ORPH), a late-stage biopharmaceutical company, announced Monday that it plans approximate two thirds reduction in its global workforce due to a restructuring aiming to advance its corporate strategy and the development of arimoclomol for Niemann-Pick disease type C or NPC.

The company further said it remains committed to pursuing regulatory approval in Europe and assessing a path forward for arimoclomol in the U.S. following receipt of a Complete Response Letter from the U.S. Food and Drug Administration or FDA on June 17.

NPC is a rare, genetic, progressively debilitating, and often fatal neurovisceral disease.

Regarding its trading, Orphazyme said its financial outlook remains unchanged for 2021. The company will provide an update and further information related to its first half results, due for release August 24.

With the planned restructuring and resulting cost savings, the company intends to free resources.

As part of the restructuring, Orphazyme will significantly scale back its global organization, including teams based in the U.S. and Europe, with the purpose of reducing the number of employees to those who will support essential activities moving forward.

In Denmark, Orphazyme will immediately initiate negotiations under the Danish Act on Collective redundancies and the Act on Information and Consultation.

Further, Rmi Droller, Martijn Kleijwegt, and Anders Hedegaard will resign from the Board of Directors effective June 30. In line with the restructuring of the company, the Board of Directors will not replace them.

Orphazyme CEO Christophe Bourdon said, "The immediate actions we are taking are necessary to protect and support the ongoing approval process in Europe and the evaluation of a path forward in the U.S."

Read the original article on RTTNews ( https://www.rttnews.com/3205221/orphazyme-plans-two-thirds-job-cuts-under-restructuring-backs-fy21-outlook.aspx)

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