Australian company Immuron (ASX:IMC) has updated investors on the impact of COVID-19 and announced the resignation of its CEO.
The company said the new "altered reality will have serious ramifications for many companies and organizations."
Immuron is the maker of Travelan, an orally administered passive immunotherapy that prophylactically reduces the likelihood of contracting travellers’ diarrhea.
The company said the "COVID-19 pandemic has brought to an abrupt halt travel plans of millions throughout the world."
"It is unrealistic to believe that consumer sales of Travelan will not be significantly impacted over the coming three quarters. And while the Company has not yet experienced any reduction in sales in Australia, and only small reductions in the USA, the Board believes this is more a reflection of wholesale restocking by distributors rather than end sales to consumers.
"That said, the level of such wholesale uptake is testament to the inroads that Travelan has made within numerous global markets, and which the Board is confident will be re-established and enhanced in the future."
The company said the "keystone" of its COVID-19 strategy is the preservation of capital.
"This will involve radical cost-cutting and deferring certain research and development activities," it said, adding, "As a major first step in this process, Immuron’s CEO Gary S. Jacob has offered his resignation as CEO and member of the Board of Immuron, and the Board has accepted."
“We want to thank Dr Jacob for all of his considerable contributions to the company, and wish him well in his future endeavours,” said Chairman Dr Roger Aston.
Dr Jacob will be replaced as CEO by Jerry Kanellos. "Additional acute steps are being implemented which will see either the disappearance or significant reduction in external consultant costs," said the company.
It added, "At the same time as introducing these cost-cutting measures, the Company will look to increase overall revenues to help mitigate the anticipated decrease in Travelan sales – due to decreased travel – by aggressively promoting Travelan and Travelan's sister product, Protectyn, for their gut health benefits."