A Medical Device Daily
Xtent (Menlo Park, California) reported that it plans to engage an investment bank to help the company pursue strategic alternatives which may include the sale of some or all of the company's assets or other types of merger or acquisition transactions intended to maximize shareholder value.
On Jan. 22, the company notified 112 employees out of its total employment of 121 that their positions would be eliminated effective March 23.
"Given the continued challenges faced in the capital markets, we believe it is in the best interests of the shareholders to consider strategic options," said Gregory Casciaro, Xtent president/CEO. "We remain confident in the benefits of customizable stenting and are assessing all viable options available to us in order to maximize the value of our assets."
He added that effective immediately, "we are executing plans to reduce activities and costs to a critical minimum, including a significant reduction in headcount in order to preserve cash and flexibility."
The company said it does not intend to disclose developments with respect to its evaluation of strategic alternatives unless and until the evaluation of all proposals and alternatives has been completed and it has entered into a transaction. It said there can be no assurances that it will be able to obtain financing and/or enter into a strategic transaction, or as to the timing or terms of any such transaction.
Xtent develops customizable drug-eluting stent systems for the treatment of coronary artery disease.