GI Dynamics reported losses of $35 million, or $3.71 per share, on revenue of $1.3 million. That amounts to a 27% drop in losses as sales shrunk 53.5% compared with 2014. The company said the reduced revenue, down 50% from last year, was due to its Endo trial which was shut down early last year.
The company reported that it has $21.7 million in total assets, down over 50% from last year, when the company reported assets amounting to $59.5 million
In August, GI Dynamics said it would slash its workforce by 46% by the end of 2015, cutting about 25 jobs, after a too-high rate of liver infections forced the halt of a U.S. clinical trial for its EndoBarrier weight loss device.
The Lexington, Mass.-based firm said it was making the cuts to cover the cost of shutting down the trial and to make sure it has enough cash “to ensure sufficient cash remains available to establish new priorities, continue limited market development and research, and to evaluate strategic options.”
After the cuts are implemented GI Dynamics said it expects to have roughly 29 full-time workers.
Lexington, Mass.-based GI Dynamics said last March that the FDA halted enrollment in the 325-patient Endo trial after some patients developed bacterial infections known as hepatic abscesses.
GI Dynamics, which sacked chief medical officer Dr. David Maggs for cause last June, said there were 7 cases of hepatic abscess in the trial, for an incidence rate of roughly 3.5%. That’s nearly double the 2% safety threshold, the company said, noting that the rate outside the U.S. is about 0.73% “based on experience with approximately 3,000 units shipped commercially since 2009.”