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Biotech company – Evolva pulls the reissue line – Disposals in top management News

Wednesday, August 30th, 2017 | Economy

Absences also occur in top management. Analysts are now expecting commercial strategy and financing.
The company plans the job cuts at its locations in Denmark, the USA and India, as a company spokesman said on Wednesday. The bottom line is to reduce job vacancies from currently 178 to around 100.
At the same time, the new management team, headed by Simon Waddington, plans to concentrate the research and development activities at its head office in Reinach, as it says in a statement. A part of the foreign employees is therefore to be employed in Reinach. There, Evolva currently has 55 jobs.
Millinoen heavy savings
In order to push costs, the company also wants to invest less in research and instead increasingly rely on the marketing of already developed products. The restructuring also provides for the branch office in India to be split up into an independent research and development group by the end of the year.
With the measures, the company, which has been writing red numbers for years, wants to take the leap into the profit zone. The annual operating costs are to be reduced by around 30% or CHF 11 million. The savings will be effective in the second quarter of 2018.
At the same time, the restructuring will impact the result for 2017 at around CHF 5 million. Investments for centralization are estimated to be around CHF 1 million, the largest of which will be booked in the fourth quarter of 2017.
Chair back in the carpet
Evolva reported a half-year loss of CHF 20.3 million in mid-August. For the current year, Evolva expects a threefold increase in product sales compared to the previous year. This forecast does not change as a result of the restructuring. In 2016, sales fell by 28% to CHF 9.6 million.
The conversion also has consequences in top management. Thus, there are three exits in management until the end of the year. Chief Business Officer Pascal Longchamp, Chief Scientific Officer Jørgen Hansen and Panchapagesa Murali left the company. At the beginning of July the company had already announced the departure of longtime CEO and co-founder Neil Goldsmith.
Three key products
The company currently has three key products produced by yeast fermentation: Already sold as a fragrance and flavor, Nootkaton, a product of citrus fruit, smells of grapefruit. At present, Evolva is working on the approval of the substance for pest control.
Presatrol, which is used in food supplements, is already on the market. However, Evolva is hoping to gain the greatest hopes in the stevia sweetener Eversweet, whose market introduction is planned in collaboration with the US company Cargill next year.
Analyst not surprised
About two weeks ago the company had announced that the strategy had been put to the test. His chief goal was to "increase aggressively and profitably" the product sales, to soon see a black zero, the CEO announced then.
The current measures are therefore not surprising for analysts. After the appointment of the new CEO, this is the second necessary step to rehabilitate the company, writes Vontobel's expert. The next step is an update on commercial strategy and financing. It assumes a capital increase in the amount of CHF 60 million.
On the stock market, the Evolva papers are recording a few centimeters lower shortly after noon in an attractive overall market, which corresponds to a minus of 2.4%.
(AWP)

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