Stock Update (NASDAQ:AMDA): Amedica Corporation Announces Workforce Reduction
Amedica Corporation (NASDAQ:AMDA) announced that it has reduced its workforce by approximately 38% to lower its operating expenses. The company will continue to focus on its commercial sales strategy to add new surgeons, territories, and distributors.
“We acknowledge the hard work of those affected by this decision, towards bringing silicon nitride technology to patient care,” said Dr. Sonny Bal, Chairman and Chief Executive Officer of Amedica. “Consistent with our previously-announced commitments, this prudent course, albeit based on a difficult decision, will conserve cash and further our business objectives.”
The actions associated with the plan were implemented on October 3, 2016 and completed on October 4, 2016. The Company estimates the staff reductions to result in savings of approximately $2.0 million in cash operating expenses on an annualized basis, with estimated one-time severance and related costs related to the restructuring of approximately $465 thousand expected to be recorded in the 4th quarter of 2016. (Original Source)
Shares of Amedica are currently trading at $0.933, up $0.013 or 1.41%. AMDA has a 1-year high of $5.33 and a 1-year low of $0.60. The stock’s 50-day moving average is $0.93 and its 200-day moving average is $1.20.
Amedica Corp. operates as a commercial biomaterial company that focuses on using its silicon nitride technology platform to develop, manufacture and sell a broad range of medical devices. It currently markets spinal fusion products and are developing products for use in total hip and knee joint replacements. The company market a complementary line of non-silicon nitride spinal fusion products which allows it to provide surgeons and hospitals with a broader range of products. These products include three lines of spinal fusion devices and five types of orthobiologics, which are used by surgeons to help promote bone growth and fusion in spinal fusion procedures.