- Immuron's (IMC) CEO and director Dr Gary Jacob has resigned and the company has cut costs in response to the coronavirus COVID-19 outbreak
- While the company has not experienced any sales reductions across Australia, it believes it's heading in that direction
- Immuron believes that once this is over its lead product, Travelan, will be re-established
- Travelan is a tablet which helps protect people from traveller's diarrhoea
- As a major first step for the company, Immuron's Board has accepted Gary S. Jacob's offer to resign as CEO
- Gary has been CEO since 2018 and operates from the U.S.
- Dr Jerry Kanellos will replace Gary and this will see the day-to-day operations move from the States back to Australia
- Due to decreased travel, Immuron will look to promote Protectyn which protects gut health rather than focus on Travelan due to the travel restrictions
- Immuron is currently up 17.2 per cent and shares are trading for 7.5 cents each
Immuron's (IMC) CEO and director, Dr Gary Jacob, has resigned and the company has cut costs in response to coronavirus COVID-19.
As of yet Immuron has not seen any reductions in its Australian sales, and only a minimal drop in the United States. But, it believes it is unrealistic to say it won't happen.
Immuron's lead product, Travelan, has made a household name for itself in multiple global markets and the company is confident that once this pandemic is over Travelan will be re-established.
Travelan is a tablet which helps protect people from traveller's diarrhoea. According to the Centre for Disease Control and Prevention, up to 70 per cent of travellers can be affected by this.
As a result of uncertain conditions and the changing market, the Board of Immuron has moved quickly to address the ongoing COVID-19 situation at its impact on the company.
The main point of this strategy will be the protection of Immuron's capital to allow the company to operate as normal during this difficult time for many companies.
Research and development activities will be deferred and significant costs will be cut.
As a major first step for the company, Immuron's Board has accepted Gary S. Jacob's offer to resign as CEO.
"We want to thank Dr Jacob for all of his considerable contributions to the company, and wish him well in his future endeavours," Chairman Dr Roger Aston commented.
Jerry Kanellos will replace Gary and this will see the day-to-day operations move from the States back to Australia.
Other steps are also being taken such as a significant reduction, or complete disappearance, of external costs.
As a result from this all Directors have agreed to the start-up of a payment model which will use Board fees rather than monetary value.
Annually, this is expected to reduce operating expenses by $2 million.
Simultaneously, as a result from decreased travel arising from the travel restrictions, Immuron will look to increase overall revenues.
The company will promote its other product, Protectyn, which helps manage and balance gut health.
The company hopes that these actions will put them in a stronger position for the future.
Immuron is up 17,2 per cent on the market and shares are trading for 7.5 cents each at 1:03 pm AEDT.