Amedica (NSDQ:AMDA) said today it laid off approximately 38% of its workforce to lower operating expenses.
The Salt Lake City, Utah-based company said the layoffs were part of a plan implemented on October 3 and completed the next day, which resulted in savings of approximately $2 million in annual cash operating expenses.
The company said the action also incurred approximately $465,000 in one-time severance and related costs, which will be recorded in its 4th quarter of the 2016 fiscal year.
“We acknowledge the hard work of those affected by this decision, towards bringing silicon nitride technology to patient care. Consistent with our previously-announced commitments, this prudent course, albeit based on a difficult decision, will conserve cash and further our business objectives,” CEO & chair Dr. Sonny Bal said in a press release.
In August, Amedica said it won expanded FDA clearance for additional sizes of its Valeo II lateral lumbar interbody fusion device. The Valeo II lateral lumbar fusion device is made out of proprietary medical grade silicon nitride ceramic and includes 2nd-generation instrumentation for improved patient safety, the company said.
The device is indicated for intervertebral body fusion of the spine in skeletally mature patients with the use of an autograft to facilitate fusion, the company said.
