Guilford biotech to cut 14% of workforce amid widening losses
Contributed
Hyperfine's portable MRI unit, Swoop.
Biotechnology firm Hyperfine Inc., an emerging growth company based in Guilford, announced Wednesday that it is cutting about 14% of its global workforce amid widening losses.
The company said the restructuring, which was initiated Tuesday, is intended to reduce costs and “create a more streamlined organization to support its business priorities.”
The restructuring mainly affects employees in technical positions and is focused on internally-facing roles, Hyperfine said in a disclosure to the U.S. Securities and Exchange Commission.
This is the second major restructuring for the company in recent years. In the first quarter of 2023, Hyperfine reduced its global workforce by 13%.
As of Feb. 15, 2024, Hyperfine had 131 full-time employees, with the vast majority (127) living in the United States, the company disclosed in its most recent annual report. Of that total, 25 work in sales, clinical and marketing; 84 work in research, development, manufacturing and operations; and 22 work in general and administrative capacities, the company said in its annual report.
It wasn’t immediately clear how many employees the company has following its latest restructuring.
The company’s principal executive offices are located at 351 New Whitfield St., in Guilford.
The company also occupies office and laboratory space in Palo Alto, California.
Hyperfine — which went public during the SPAC IPO frenzy in 2021, and was founded by serial entrepreneur Jonathan Rothberg — is evolving from a development-stage company to a commercial-stage company.
Through the first nine months of 2024, Hyperfine reported a 26.6% increase in sales, to $10.6 million, but an overall net loss of $30.3 million, or 42 cents per share, according to its financial filing.
That was substantially higher than the $10.8 million, or 15 cents per share loss the company recorded during the first three quarters of 2023.
Since 2020, the company received nine clearances from the U.S. Food and Drug Administration (FDA) for its portable imaging device, Swoop, which can help medical providers make a rapid diagnosis, such as whether a patient has had a stroke.
The company received approval to market Swoop in the European Union last year. It expects to receive two additional software clearances from the FDA in 2025.
Hyperfine said its streamlined organization will “maintain product development capabilities” that are sufficient to continue to support the Swoop system technology. It expects to “substantially complete” the restructuring in the first quarter of 2025.
The restructuring is expected to cost about $400,000, including cash and benefits severance costs, Hyperfine disclosed
As of 11:17 a.m. Wednesday morning, Hyperfine’s stock price was down about 2% to 98 cents.
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