VICAL INC FILES (8-K) Disclosing Costs Associated with Exit or Disposal Activities, Change in Directors or Principal Officers, Financial Statements and Exhibits
(Edgar Glimpses Via Acquire Media NewsEdge) Item 2.05 Costs Associated with Exit or Disposal Activities.
On August 22, 2013, Vical Incorporated (the "Company") issued a press release
announcing, among other things, a restructuring to conserve capital, including a
staff reduction of 47 employees, approximately 39% of the Company's total
workforce. Following the restructuring, the Company will have approximately 74
employees. In addition, the Company is focusing its resources on its infectious
disease vaccine programs and terminating activities related to Allovectin®, the
Company's investigational cancer immunotherapy which recently failed to meet its
Phase 3 efficacy endpoints. The Company's Board of Directors approved the
restructuring on August 8, 2013, the same day Allovectin® Phase 3 results were
unblinded. Affected employees were informed on or about August 22, 2013, the
same day the restructuring is expected to be completed. The Company anticipates
that it will incur personnel-related restructuring charges of $2.2 million,
consisting primarily of one-time termination benefits. A copy of the press
release is attached as Exhibit 99.1 to this Current Report.
Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
On August 22, 2013, and in connection with the restructuring, we entered into a
separation agreement with Alain P. Rolland, Pharm.D., Ph.D., Executive Vice
President, Product Development. Pursuant to the terms of the separation
agreement, Dr. Rolland will be entitled to receive severance benefits consisting
of continued base salary payments and the payment of health insurance premiums
for a period of 12 months, plus a payment equal to his cash bonus paid in the
previous year. Dr. Rolland will also receive accelerated vesting on all his
unvested stock awards as if he had remained employed by the Company for 12
months from the date of termination. In addition, the post termination exercise
period for Dr. Rolland's stock options will be extended to 12 months. In
exchange for the severance benefits, Dr. Rolland provided the Company with a
general waiver and release of claims. The Company's obligation to pay the
severance benefits is subject to the waiver and release of claims not being
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description
10.1 Separation Letter Agreement between Vical Incorporated and Alain P.
Rolland, Pharm.D., Ph.D., dated August 22, 2013.
99.1 Press release issued by Vical Incorporated on August 22, 2013.
[ Back To Technology News's Homepage ]