Perth, Nov 11, 2008 (ABN Newswire) - HELICON GROUP LIMITED (ASX:HCG) announced today that it has implemented a restructuring and cost reduction program in response to the ongoing delays by the Chinese regulatory authority, the State Food and Drug Administration (SFDA), to grant regulatory approvals across the board and an anticipated slow down in economic activity in China.
The restructuring and cost reduction programs should result in a reduction of operational costs by approximately 40 to 50% from December 2008.
The cost management program that will follow will ensure the Company has approximately two years of funding.
The Company remains confident that its business model is viable and continues to actively pursue its strategy to gain regulatory approval for its existing range whilst also negotiating with various groups to add to its portfolio.
The Company will also investigate other opportunities and directions.
"Helicon's Board of Directors has recognised these short term hurdles to the implementation of the Company's strategy and is taking the longer term view in this restructure" commented Helicon CEO Peter Abrahamson.
The Company will continue to use its expert consultants and established logistics partners as a cost-effective market access and market development strategy.
The restructuring and cost reduction programs should result in a reduction of operational costs by approximately 40 to 50% from December 2008.
The cost management program that will follow will ensure the Company has approximately two years of funding.
The Company remains confident that its business model is viable and continues to actively pursue its strategy to gain regulatory approval for its existing range whilst also negotiating with various groups to add to its portfolio.
The Company will also investigate other opportunities and directions.
"Helicon's Board of Directors has recognised these short term hurdles to the implementation of the Company's strategy and is taking the longer term view in this restructure" commented Helicon CEO Peter Abrahamson.
The Company will continue to use its expert consultants and established logistics partners as a cost-effective market access and market development strategy.
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About Helicon Group Limited
Helicon is listed on the Australian Securities Exchange. The Company's business is to identify and exploit niche market opportunities in the biomedical markets of North Asia, specifically China and to participate in the significant growth that has been projected for these markets over the next 25 years.
Helicon looks for "Special Situations" for advanced Western biopharmaceutical products that are not available in China or other North Asian Markets or where there are market needs that are not being adequately provided for.
Helicon's product partners are likely to be innovative small to medium sized pharmaceutical and healthcare enterprises focused largely on western markets.
Helicon seeks exclusive licenses for the designated markets and utilises a low cost operating overhead base in combination with established channel partners for product registration, distribution, marketing, and sales.
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