Exhibit 99.1
electroCore Announces Comprehensive Redeployment and Cost Reduction Plan
Management to host conference call and webcast at 8:30 am ET on Thursday, May 30
May 29, 2019 at 4:30 p.m. EDT
BASKING RIDGE, N.J., May 29, 2019 — electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, today announced that management and the Board of Directors are making significant adjustments to the deployment of personnel and resources across the organization. The effort is intended to focus the Company on currently available and near-term revenue opportunities and on clinical programs specifically designed to expand the gammaCore™ product labeling. To achieve this goal, the Company isright-sizing across its organization including its field sales force and clinical operations. The Company will focus its resources on high-value geographic and other sales territories where the current prescriber base and regional payer coverage are most concentrated including:
| | (i) | Regional payers, some of whom have recently amended their policies to permit reimbursement for electroCore’s principal offering, gammaCore™. |
| | (ii) | The Veterans Administration and Department of Defense, covered under the Federal Supply Schedule contract secured by the Company in December 2018. |
| | (iii) | The United Kingdom, where a recent Innovative Technology Program cluster headache treatment award offers the Company the potential to generate revenue. |
| | (iv) | Other potential revenue opportunities in the pain management field. |
The Company will continue to pursue relationships with pharmacy benefit managers.
electroCore also announced that it is scaling back its clinical development program as part of the redeployment of resources. Changes include the postponement of several planned studies while focusing on opportunities to broaden the approved indications for gammaCore™ products. The Company is also reducing its medical affairs activities consistent with its revised commercial plan.
The broad-based redeployment and expense reduction plan will be fully implemented by the end of the second quarter of 2019. Beginning in the third quarter of 2019, the Company’s average quarterly cash burn is expected to be less than $7.0 million through 2020, compared to its previously reported expected burn of $12.0 million per quarter. Inclusive ofone-time charges of approximately $350,000 associated with implementation of this plan, the Company’s second quarter cash burn is expected to be between $11.0 million and $11.5 million. This expense reduction plan is further bolstered by the decision of the Company’s independent directors to forgo all cash compensation for their Board service effective June 1, 2019, as well as the willingness of Frank Amato, the Company’s chief executive officer, to voluntarily accept a 10% reduction in base annual cash compensation for the next 12 months, which is expected to be offset by a grant of restricted stock units valued at $50,000 on June 7, 2019, the date of the Company’s annual meeting of stockholders.
On March 31, 2019, the Company had $52.4 million of cash, cash equivalents and marketable securities. Based on its current cash resources and cash flow projections, and after giving effect to the anticipated cost savings from the comprehensive redeployment and cost reduction plan, electroCore believes that it will have adequate resources to fund its operations into the beginning of 2021.
