Acton drug test company plans restructuring amid revenue drop
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Psychemedics offices in Acton
Following a $2.1-million loss in the third quarter, Acton drug testing firm Psychemedics said on Thursday it is in the midst of a restructuring to reflect the downward trend in its revenues.
The company didn’t provide any details as to what the restructuring would entail in either its Thursday earnings report or its filings with the U.S. Securities & Exchange Commission. The cost savings from the restructuring are anticipated to hit the company’s financials in the fourth quarter and into 2024. The company didn’t respond to requests for comment from WBJ.
The company’s revenue for the quarter was $5.7 million, a 12% decrease from the third quarter last year, which saw the company bring in $6.5 million, according to a Thursday press release issued by the company.
Psychemedics saw an 18% rise in operating expenses due to legal and settlement fees and third-party accounting fees.
The company reported its vice president of lab operations, Michael Schaffer, is no longer with the company, according to a filing with the Securities and Exchange Commission made on Sept. 20.
Schaffer is the third executive to leave the company in the past two months; Executive Vice President Charles Doucot and Assistant Controller Michael Weisenhoff both left the company in September.
In addition to the departure of Doucot and Weisenhoff, the company appointed a new CEO in August following the retirement of longtime leader Ray Kubacki. It appointed a new chief revenue officer, Shannon Shoemaker, according to a company press release issued in September.
Separately, the company announced in October it has replaced marijuana with fentanyl on its five-panel drug screening kit. The company made the move to reflect changing attitudes towards cannabis and the rise of the fentanyl crisis.
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