Imagion Biosystems Ltd. said it reduced its staff by one-third in a restructuring to preserve its working capital.
The Melbourne, Australia-based healthcare equipment developer said the restructuring will allow it to better align resources with expenditures as the company advances into the clinic working with collaborators and partners.
While the reduction in headcount will reduce its rate of cashburn, Imagion is not expecting to generate significant operating revenues in the next few years, the company said in a news release.
Imagion added that the continuation of its operations hinges on equity and non-dilutive funding sources. Pursuant to this, the company plans to raise capital during the present quarter.
The company develops the MagSense System and Test to detect breast cancer with a certain mutation of human genes. The cancer diagnostic device received breakthrough designation from the U.S. Food and Drug Administration in July.
