Troubled Vancouver biotech QLT has laid off 42% of its workforce, the company announced yesterday.
The company said the layoffs are part of a reorganization that is expected to save approximately $3.8 million annually, once the reduction is fully implemented in the first half of 2013.
"QLT's remaining 38 employees are focused on the clinical development of our very promising Synthetic Oral Retinoid program, while the board continues to acutely focus on delivering value to shareholders," said QLT chairman Jason M. Aryeh.
QLT expects the cost of restructuring relating to this reduction in its workforce will be approximately $2 million.
The affected employees will leave during the first half of 2013, coinciding with the transition of services in connection with the sale of QLT's principal revenue-generating product Visudyne to Valeant Pharmaceuticals International Inc. (TSX:VRX) for $112 million.
The layoffs are the latest in a line of troubles for the once-mighty biotech, which earlier this year laid off 146 of its staff, reducing its workforce to 68. QLT's staff in 2006 numbered around 400.
QLT told Business in Vancouver in October that the company plans to use the money from the sale of Visudyne to buy back $100 million worth of QLT shares to increase the company's stock value.
