Company is cutting 18% of its workforce in the U.S.
Encorium’s planned $11.75 million take-over of Prologue has been put on hold and instead the companies have decided to form a partnership. In conjunction, Encorium is getting rid of 18% of its U.S. employees.
Encorium and Prologue report that negotiations relating to a merger could take place at a later date. Encorium was not immediately available to provide background on this cancellation.
The combination of the companies would have expanded Encorium’s business, which focuses on cardiology and vaccines, to include oncology-related CRO services.
In June, Encorium offered to pay $13 million for Prologue. Earlier this month, however, Encorium reported amendments to its letter of intent such that the purchase price went down to $11.25 million.
With regard to its restructuring plans, Encorium says that this is just an initial effort to achieve profitability and that it is investigating other alternatives. The company aims to reach $1 million in annual savings.