Rancho Cordova-based medical equipment firm ThermoGenesis Corp. on Wednesday announced a “strategic reorganization initiative” that will focus on cord blood-related revenue streams and speed adotption of its AXP AutoXpress system in emerging markets – a move that will result in the elimination of 11 positions.
The company’s AXP AutoXpress system is an automated device used for processing stem cells from umbilical cord blood.
ThermoGenesis said the job cuts and other moves to cut operating costs will result in an annual expense savings of approximately $1.5 million.
“One of our primary objectives is to continue to invest in our AXP Platform and clinical resources needed to further expand the system’s clinical intelligence and technological functionality,” said Matthew Plavan, ThermoGenesis CEO. “In this way, we can better meet the evolving cell processing needs of our cord blood customers and expand its use into our vascular and orthopedic cell therapy initiatives.”
In July, ThermoGenesis announced a merger deal to issue nearly 12.5 million shares of common stock to Los Angeles-based TotipotentRx Corp., a privately held firm that specializes in developing cell-based therapies in the field of regenerative medicine. On Wednesday, ThermoGenesis said that merger was still subject to “stockholder approval, among other conditions.”
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