LipoScience announced Monday that it is laying off 22 people as a result of the Raleigh medical diagnostics company having its contract with Health Diagnostics Laboratory terminated.
LipoScience reported in late March that HDL had terminated the relationship after HDL began offering its own test that measures the risk of cardiovascular disease. At the time, LipoScience estimated that the loss of the contract would lower its first quarter revenue from $12.2 million to $11.8 million.
The company is scheduled to report its first-quarter earnings on Monday, May 12. LipoScience will have about 180 employees after the layoffs.
In a statement, LipoScience CEO Howard Doran said the layoffs were a proactive move to manage the company’s cash.
“This workforce reduction was a very difficult decision for our Company, but a necessary one in order to streamline our operations company-wide,” he said.
LipoScience has struggled since going public in January 2013. The company reported a net loss of $12.5 million last year, compared to net income of $1.3 million in 2012.
The company makes a tool that measures the risk of heart disease by measuring lipoprotein particles in the bloodstream, as opposed to taking cholesterol readings. Lipoproteins cause plaque buildup in arteries.
The company's poor performance last year led to the departure of CEO Richard Brajer after 10 years leading the company. In January, LipoSciece named Doran to be its new president and CEO. Doran was most recently president and chief operating officer of Constitution Medical, an early stage diagnostics company.
LipoScience shares closed Monday at $3.15, down 9 cents. The stock is down 26 percent this year and is off 66 percent from its 52-week high of $9.26 reached May 6, 2013.