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Restructuring
12 Months Ended
Dec. 31, 2013
Restructuring  
Restructuring

12. Restructuring

 

On March 27, 2013, the Company announced a strategic change in its research and development programs to focus on the clinical development of ixmyelocel-T for the treatment of advanced heart failure due to ischemic dilated cardiomyopathy (DCM).  The Company, which recently initiated the Phase 2b ixCELL-DCM clinical trial, previously received a U.S. orphan drug designation for the use of ixmyelocel-T in the treatment of DCM.  As a result of the strategic change, the Company stopped enrollment of the Phase 3 REVIVE clinical trial in patients with critical limb ischemia (CLI).  In addition, the Company executed a corporate restructuring that reduced staff and operating expenses.  Employees directly affected by the restructuring plan were provided with severance payments and outplacement assistance.

 

As a result of the ceasing of enrollment in the Phase 3 REVIVE clinical trial, the Company recorded a one-time restructuring charge of $408,000 in the first quarter of 2013.  The restructuring accrual decreased to $21,000 as of December 31, 2013 as a result of cash payments made for severance and other personnel-related expenses.