Cytori Therapeutics Inc. reported a net loss of $11.8 million for second quarter 2014, down from a net loss $3.2 million during the same period in 2013.
Meanwhile, Torrey Pines-based Cytori (NASDAQ: CYTX) saw quarterly revenue decline to $1.3 million in second quarter 2014 from $2.3 million in second quarter 2013.
The rising loss and reduced revenue come as the company cut its workforce by about 20 percent in June and July as part of an initial set of cost-saving measures, which included substantial cuts in professional services, such as legal and accounting expenses, President and CEO Marc Hedrick said.
The company, which is developing cell therapies to treat cardiovascular disease and other medical conditions, anticipates that these reductions will yield a roughly $4.4 million annual impact, Hedrick said.
At the same time, he said the company expects revenue to increase in the second half of 2014 and 2015 based on two factors: having gotten clarity regarding the new regenerative medicine law in Japan and having received a preliminary notice of intent from the Biomedical Advanced Research and Development Authority to exercise the first option under a contract worth up to $106 million. Cytori and BARDA are negotiating specifics of the additions to the statement of work to be executed in the option 1 period that will extend the contract to September 2016.
Cytori also projects that such increases in revenue will be partially offset by higher research-and-development expenses related to the BARDA contract.