FPRX Five Prime Therapeutics Inc

On October 10, 2019, FivePrime announced a corporate restructuring to extend its cash runway and ensure long-term sustainability. As part of the restructuring, FivePrime will reduce its workforce by approximately 70 positions across all functions at the company. Approximately 70% of the eliminations will occur by the end of 2019, with the remainder occurring in 2020. In addition, FivePrime is initiating activities to reduce its corporate facilities footprint by either subletting a significant portion of its current leased space or subletting its current building and relocating to smaller facilities.

In connection with the restructuring, FivePrime anticipates it will incur approximately $3 million of pre-tax charges for severance and other costs related to the restructuring, primarily in 2019. FivePrime is unable as of the date of this filing to make a good faith determination of an estimate of the (1) total amount or range of amounts expected to be incurred in connection with the major types of costs associated with this course of action (such as one-time termination benefits, contract termination costs and other associated costs) or (2) amount or range of amounts of the charge that will result in future cash expenditures. FivePrime will file an amended report on Form 8-K in connection with FivePrime’s determination of such estimates or range of estimates. FivePrime may incur other charges not currently contemplated due to events that may occur as a result of, or associated with, the restructuring and will record these expenses in the appropriate period as they are determined. FivePrime expects the restructuring to be complete and the costs incurred and paid by the end of 2020.

Cautionary Note on Forward-looking Statements

This Current Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on FivePrime’s expectations and assumptions as of the date of this Current Report. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from these forward-looking statements. Forward-looking statements contained in this Current Report include statements about (i) the effect the restructuring will have on FivePrime’s expected cash runway; (ii) the timing of the presentation of data for FivePrime’s product candidates; (iii) the scope and timing of the restructuring; (iv) FivePrime’s plans to reduce its corporate facilities footprint; (v) the timing and scope of expected pre-tax charges for severance and other costs related to the restructuring; and (vi) FivePrime’s estimated cash, cash equivalents and marketable securities at the end of 2019. Other factors that may cause FivePrime’s actual results to differ from those expressed or implied in the forward-looking statements in this Current Report are discussed in FivePrime’s filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” sections contained therein. Except as required by law, FivePrime assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.