Encorium Group, a multinational CRO, says that it is delaying a planned acquisition and will cut 18 percent of its U.S. staff. Encorium says that instead of an acquisition of Prologue Research, it has struck a strategic partnership arrangement. And the CRO added that it has brought in Mufson Howe Hunter & Company "to investigate possible strategic alternatives to maximize shareholder value."
"The cost-cutting initiatives announced today, which are designed to save approximately $1 million annually, demonstrate our focus on achieving profitability and positive cash flow," said new CEO Dr. David Ginsberg. "We believe we are repositioning the business to take advantage of the high-growth opportunities in the clinical research industry and will continue to review strategic alternatives for the company as we strive to make Encorium successful."
- check out the Encorium release