Sinclair Pharma announces that a comprehensive staff restructuring programme has recently been implemented.
It expected to incur a one-off restructuring charge of £2.8m in relation to this programme, the full amount of which will be recognised in the period ending 31 December 2016 although the Company expects to benefit from annual cost savings of at least £2.0m as a result.
Since the disposal of the medicinal business in December 2015 Sinclair has radically simplified its operations.
There were now five brands, reduced from 32, SKUs have dropped from 1250 to 52, external contract manufacturers have reduced from 19 to three and there are 40 fewer distribution partners. As a result 39 staff, mostly in Europe, have transferred to Alliance Pharma plc and a further 13 have now left the Company.
As part of this restructuring Christophe Foucher, Chief Operating Officer, has stepped down from the Board with immediate effect.
"It is ... expected that the payment in lieu of notice that may be paid to Christophe will form a significant proportion of the £2.8m one-off restructuring charge," the company said.
In addition, nil-cost options over 1,195,330 new ordinary shares in Sinclair in respect of accumulated rights under the Company's valuation creation plan ("VCP") will vest immediately and may be exercised within six months.
The nil-cost options are held by Sinclair Pharma Man Co Limited, a company in which Christophe Foucher is a shareholder. Christophe will also remain a beneficiary of the VCP until the next measurement date which is 30 days after publication of the Company's financial results for the period to 31 December 2016 which will be issued in March 2017.
He will also receive 615,650 new ordinary shares in full consideration of his deferred bonus entitlement under the 2013 Bonus Plan.