Transcept To Reduce Workforce, Restructure Board - Quick Facts

(RTTNews) - Transcept Pharmaceuticals, Inc. (TSPT), a specialty pharmaceutical company, announced plans to reduce expenses by implementing a reduction in force and restructuring its Board.

The company said it plans to adopt these changes in order to conserve cash while it works with Leerink Swann to evaluate strategies to maximize value for shareholders.

Transcept plans to eliminate 6 employee positions, or approximately 43% of its workforce. After full implementation of the reduction in force, Transcept will have 8 remaining employees. Once fully implemented, the organizational change will reduce current annualized payroll and benefit expenses by approximately $865 thousand.

Effective December-end, Transcept will restructure its Board. Glenn Oclassen, President and CEO, will assume the role of Chairman of the Board and CEO. Kirk Raab, the company's current Chairman of the Board, will move to the position of Lead Director. Christopher Ehrlich, member of the Board, will resign effective at the end of December 2013. The restructuring will save the company approximately $180 thousand on an annualized basis, or 36% of its board governance costs.

Transcept also said it has agreed to increase the change-in-control severance benefit for Leone Patterson, CFO, from 1.25 times her base salary to 1.5 times her base salary. To offset the potential increase in expense, the change-in-control severance arrangement for Glenn Oclassen has been reduced from 2 times his base salary to 1 times his base salary, the company said.