Healthcare Business Rewind: Quest Cuts Management Layers, Intercept’s Successful IPO
Quest Diagnostics Incorporated (NYSE:DGX) intends to remove three layers of management and sack between 400 and 600 executives, including vice presidents, while it consolidates several divisions into two groups. The job eliminations will add $65 million to an already announced scheme to save $500 million, but the firm will take charges of between $15 million and $20 million to cover the restructure costs.
The Intercept Pharmaceuticals (ICPT) initial public offering opened for trading at $19.40, marking a premium of 29 percent to its $15 top-range IPO pricing. The firm will use the funds to develop its lead drug candidate, obeticholic acid, which is a treatment for a rare autoimmune liver disease. The medication should be a star performer=, and is currently in Phase III trials.
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Shares of Cytori Therapeutics (NASDAQ:CYTX) jump, following word that the firm has begun its Athena clinical trial to investigate its cell therapy in patients with a severe form of untreatable heart failure because of chronic myocardial ischemia. The first patient was treated at the Minneapolis Heart Institute Foundation last month, and has already undergone a seven day follow-up evaluation.
Rosetta Genomics (NASDAQ:ROSG) shares moved up notably the company announced earlier Thursday that it had chosen E. Robert Wassman, M.D. as its chief medical officer, and Dganit Bar, Ph.D., as its chief scientific officer. These appointments were to new created positions.