Full Press Release Details
Announces Workforce Reduction
LAKE CITY, (Marketwired) - 10/05/16 - Amedica Corporation (NASDAQ: AMDA), an innovative biomaterial company that develops
and commercializes silicon nitride as a platform for biomedical applications, today announced that it is reducing its workforce
by approximately 38% to lower its operating expenses and extend its cash runway. The company will continue to focus its efforts
on its commercial sales strategy targeted at adding new surgeons and distributors and expanding sales into new territories.
sincerely appreciate the contributions of those who are leaving Amedica toward bringing silicon nitride ceramic technologies to
patients," said Dr. Sonny Bal, chairman and Chief Executive Officer of Amedica. "Consistent with our earnings call
remarks, this difficult decision is the prudent way forward, as we seek to conserve cash and pursue our business objectives."
actions associated with the plan were implemented on October 3, 2016 and completed on October 4, 2016. The Company estimates the
staff reductions to result in savings of approximately $2.0 million in cash operating expenses on an annualized basis, with estimated
one-time severance and related costs related to the restructuring of approximately $465 thousand expected to be recorded in the
4th quarter of 2016.
is focused on the development and application of interbody implants manufactured with medical-grade silicon nitride ceramic. Amedica
markets spinal fusion products and is developing a new generation of wear- and corrosion-resistant implant components for hip
and knee arthroplasty as well as dental applications. The Company's products are manufactured in its ISO 13485 certified
manufacturing facility and through its partnership with Kyocera, one of the world's largest ceramic manufacturers. Amedica's
FDA-cleared and CE-marked spine products are currently marketed in the U.S. and select markets in Europe and South America through
its distributor network and its growing OEM and private label partnerships.
more information on Amedica or its silicon nitride material platform, please visit www.amedica.com.
press release contains statements that constitute forward-looking statements within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements
contained in this press release include the intent, belief or current expectations of Amedica and members of its management team
with respect to Amedica's future business operations as well as the assumptions upon which such statements are based. Forward-looking
statements include specifically, but are not limited to, estimates that the impact from these strategic actions will deliver annualized
operating profit benefit, that these changes will reduce total cash burn, increase financial sustainability, and strengthen the
balance sheet. Such statements are subject to risks and uncertainties such as the timing and success of new product introductions,
physician acceptance, endorsement, and use of Amedica's products, regulatory matters, competitor activities, changes in
and adoption of reimbursement rates, potential product recalls, effects of global economic conditions and changes in foreign currency
exchange rates. Additional factors that could cause actual results to differ materially from those contemplated within this press
release can also be found in Amedica's Risk Factors disclosure in its Annual Report on Form 10-K, filed with the Securities
and Exchange Commission (SEC) on March 23, 2016, and in Amedica's other filings with the SEC. Amedica disclaims any obligation
to update any forward-looking statements.