Oncocyte To Slash Over 40% Staff, Eliminate COO, CSO Roles; To Sell 70% Stake In Razor Genomics

(RTTNews) - Oncocyte Corporation (OCX), a molecular diagnostics firm, said on Friday that it is axing over 40 percent of its workforce to focus more ok key products that address larger markets.

The company said that it will also eliminate the positions occupied by Gisela Paulsen, President and Chief Operating Officer or COO, and Douglas Ross, Chief Scientific Officer or CSO. Oncocyte expects that Paulsen and Ross will serve as advisors during a transition phase over the next quarter.

In addition, diagnostics firm has inked a deal through which it will sell 70 percent of its ownership of Razor Genomics, Inc. to "leaders in the development of early stage lung cancer diagnostics and the provision of gene-expression-based prognostic tests." This action aims to cut development and commercialization costs with respect to DetermaRx.

Joshua Riggs, Oncocyte's Interim CEO, said: "We believe this transaction, along with the reduction in force, will prepare us for a more focused strategy and further elongate our cash runaway as we prepare for key commercial and developmental milestones in 2023. We plan to keep shareholders updated with our enhanced focus and strategy in Q1 2023."