Surmodics initiates organizational changes, cuts workforce by about 13%

According to a regulatory filing, on January 30, 2023, Surmodics initiated certain organizational changes designed to align its human resources with its business needs and to reduce its use of cash. The organizational changes were prompted by the decision of the U.S. Food and Drug administration to request additional information and data related to the premarket approval application for the company’s SurVeil drug-coated balloon, which led the company to reassess the timing of a potential related milestone payment that would be due following approval and subsequent commercial revenue related to its distribution of the product. The organizational changes will result in a reduction in the company’s workforce by approximately 13%. In connection with the workforce reduction, the company expects to record total restructuring charges of approximately $1M to $1.2M in the second quarter of fiscal 2023. These charges represent cash expenditures for severance, benefits continuation, outplacement, and other costs. The workforce reduction is expected to be completed within the company’s second fiscal quarter.