TC BioPharm To Outsource Several Functions; Annualized Savings Of $4.2 Mln

(RTTNews) - Biotechnology company TC BioPharm (Holdings) plc (TCBP) announced Tuesday initiatives to outsource several functions, moving to a more decentralized model, resulting in reduction in its workforce and creating a leaner and more agile organization as part of the company's strategic developmental plan.

The initiatives focus on moving to a CDMO model for production to accommodate larger production demand for future clinical trials, allowing TCB to review alternatives for new manufacturing facilities incorporating newly developed automated and other cell therapy production technologies.

Additionally, the company is reviewing alternative approaches for testing and clinical needs, which align with a decentralized drug development model. This approach is expected to result in a workforce reduction of approximately 20 employees, focused largely within the company's production and quality divisions and represents approximately half of the company's total headcount.

Separations will be substantially complete by the end of the second quarter 2025 and are expected to reduce the core operational burn rate by approximately 55% compared to 2024.

As a result of these steps, when compared to 2024, the Company estimates partial year 2025 savings to be approximately $2.1 million and annualized savings to be roughly $4.2 million.