Albany Molecular Research, reflecting the ongoing challenges of the global economy, announced today a series of cost saving actions for 2012, including a reduction in the company’s workforce. The moves are designed to improve AMRI’s overall cost competiveness and increase cash flow generation. The workforce reductions are primarily aimed at U.S. operations, and are in line with earlier announced reductions in the company’s internal R&D activities. The goal is to generate a total annual savings of approximately $10-$11 million. Although savings will begin to be recognized in the first quarter of 2012, AMRI expects to incur a pre-tax restructuring charge in the fourth quarter of approximately $5-$6 million associated with a lease termination and employee severance costs.
AMRI has also filed a shelf registration statement with the SEC, intended to provide the company with flexibility to raise funds from the offering of its securities. The company may occasionally offer its common stock, preferred stock, and warrants, up to an aggregate public offering price of $50 million.
AMRI’s President and CEO, Thomas E. D’Ambra, spoke of the move: “As we stated in our announcement in November, we are committed to taking the necessary actions to reduce the Company’s operating expenses to focus on our core contract research and manufacturing business and to ensure profitability. These actions will place AMRI in a more cost-competitive position while ensuring we continue to provide the highest quality service to our clients. We are moving quickly on these carefully considered actions and expect them to positively impact cash flow during the next year. Although our outlook for growth in outsourced contract services by global pharmaceutical companies remains positive, as evidenced by our recent strategic deals, we continue to evaluate our global infrastructure for additional opportunities to streamline our operations and reduce cost.”
AMRI is a global contract research and manufacturing organization that provides customers with integrated services for the development of pharmaceutical products and the manufacturing of API and drug product for existing and experimental new drugs.
For additional information, visit the company’s website at www.AMRIGlobal.com
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