Millenium Biologix to trim workforce, close locations, refocus financial efforts

By Elaine Rigoli

Tampa, Fla., March 29 - Millenium Biologix Corp. said current cash at the end of February was C$5.2 million but anticipates a 12-month cash requirement of about C$12 million to C$14 million.

As a result, the company is reviewing financing and strategic options that might provide the resources necessary to continue execution of its newly revised business plan, according to a news release.

Some of the company's proposed cost-containment initiatives include reducing its staff by about 30% and closing two of its four sites by the third quarter of 2006, the release said.

Millenium also announced that its newly appointed board of directors has decided to focus on its autologous clinical tissue engineering systems (Actes) program.

"This strategic decision further emphasizes the tremendous value proposition of Actes as a platform technology for cell therapy and tissue engineering. With an immediate commercial focus on cartilage injury and bone graft substitutes, Actes may also have the potential to be expanded for clinical applications in tendon and other connective tissue such as vertebral (spine) discs, as well as cardiovascular applications. We also intend to identify a strong commercial partner to accelerate the value of our extensive orthobiologics franchise," chairman Jeremy Curnock Cook said in the release.

Millenium said it wants to start pre-launch clinical beta testing at key centers in Europe in the fall of 2006.

The company also announced the appointment of Brian Fielding, Millenium's executive deputy chairman, as interim chief executive officer.

Sydney Pugh has retired as CEO and will continue as a director of the company, the release said.

Millenium Biologix is based in Kingston, Ont.

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