Oncomed Pharmaceuticals Inc (NASDAQ: OMED) is having a pretty strong start to the trading session today. While the stock started the day in the red, it quickly made it to the green and beyond following news of restructuring and cost cutting plans. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:57), OMED is trading at $3.85 per share after a gain of $0.08 per share or 2.12% thus far today.
OMED Gains On Restructuring And Cost Cutting Plans
As mentioned above, Oncomed Pharmaceuticals is having a strong start to the trading session today after announcing that it plans on big restructuring efforts. The company is ultimately hoping to cut costs, and the plans show that costs will clearly be cut.
In fact, OMED plans on massive layoffs. The company announced today that it will reduce half of its workforce, leaving it with 64 employees in total. This will give the company sufficient funds to operate until the third quarter of 2019 according to a company statement. Also, the company is expecting for severance related costs to come in at $2.6 million.
Stop wasting your time! Find winning trades in minutes with Trade Ideas!
What We’ll Be watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on OMED. In particular, we’re interested in following the company through the restructuring efforts. Nonetheless, we’ll continue to follow the story closely and bring any news to you as it breaks!
Want The News Faster?
Check out the CNA Finance News Desk to get the scoop before we have the time to write the full story!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Flickr]