GTC Bio Axes CEO, 50 Staffers
Framingham-based GTC Biotherapeutics Inc. has secured $7 million in debt financing from its French partner LFB Biotechnologies, but it came with a price.
Geoffrey Cox, chairman, president and CEO, and "several other members of the current senior management team" are leaving the company, according to a company press release. William Heiden, a member of the GTC board of directors and experienced pharmaceuticals executive, will replace Cox.
The company will also let go 30 full-time employees at its headquarters and 20 at the farm where it raises goats genetically modified to carry proteins that treat various medical conditions.
In 2009, Cox received a pay package worth more than $666,000, according to GTC's U.S. Securities and Exchange Commission filings.
Under terms of a severance agreement, he is entitled to two years salary, his maximum incentive bonus and other pay upon departure.
LFB has been pumping money into GTC for years. It gave the company a $7 million loan in March at about the same time it was delisted from the Nasdaq stock market.
The company lost nearly $30 million in 2009.
The latest $7 million debt financing agreement carries an interest rate of 4 percent, matures in three years and allows LFB to convert the GTC debt into GTC common stock at any time.
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