TCBP Announces Outsourcing Initiatives, Reducing Burn Rate and Overhead
- The company is expected to reduce core operational burn by 55% when compared to 2024
EDINBURGH, Scotland, March 18, 2025 /PRNewswire/ -- TC BioPharm (Holdings) PLC ("TC BioPharm" or the "Company") (NASDAQ:TCBP), a clinical-stage biotechnology company developing platform allogeneic gamma-delta T cell therapies for cancer and other indications, today announced 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.
"This decision to reduce staff is attributable to the company's strategic shift in focus towards an outsourced production model and something that we believe will ultimately better position TC BioPharm for future clinical trial plans as well as advancements in new cell therapy manufacturing technologies," said Bryan Kobel, CEO of TC BioPharm. "We are at a pivotal moment in our development as we expand into new indication verticals, prepare for ACHIEVE data review which will drive our next clinical pathway, and reduce the need for costly in-house expenses to provide a stronger foundation for future growth. I arrived at this decision knowing it will be difficult to say goodbye to colleagues who have been a significant part of TC BioPharm's culture and accomplishments. I'm grateful to all those who have shared in our history and to those who will continue to usher in the next phase of TCBP."
About TC BioPharm (Holdings) PLC
TC BioPharm is a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing gamma-delta T-cell therapies for cancer treatment with human efficacy data in acute myeloid leukemia. Gamma-delta T cells are naturally occurring immune cells that embody properties of both the innate and adaptive immune systems and can intrinsically differentiate between healthy and diseased tissue.
TC BioPharm is the leader in developing gamma-delta T cell therapies and the first company to conduct phase II/pivotal clinical studies in oncology. The Company is conducting two investigator-initiated clinical trials for its unmodified gamma-delta T cell product line - Phase 2b/3 pivotal trial in the treatment of acute myeloid leukemia using the Company's proprietary allogeneic CryoTC technology to provide frozen product to clinics worldwide.
Forward-Looking Statements for TC BioPharm
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Current Report on Form 8-K that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company's intent or ability to affect any budget savings or execute on any M&A or capital raising strategy. These statements are based on management's current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For other important factors that could cause actual results to differ materially from the forward-looking statements in this Current Report on Form 8-K, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and our other reports filed with the SEC, all of which is available on the Company's Investor Relations website at www.tcbiopharm.com and on the SEC website at www.sec.gov. All forward-looking statements reflect the Company's beliefs and assumptions only as of the date of this Current Report on Form 8-K. The Company undertakes no obligation to update forward-looking statements to reflect future events or circumstances.
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SOURCE TC BioPharm