pSivida, a leader in the development of sustained release drug delivery products primarily for eye diseases, is implementing a site consolidation plan in support of its product development program and plans to conduct all future research and product development in a single location. Subject to an employee consultation process required by local U.K. law, pSivida proposes to close its research facility in Malvern, U.K. and locate all research and product development activities in the company's state-of-the-art, cGMP facility in Watertown, Massachusetts.
Dr. Paul Ashton, president and CEO of pSivida, said, "We look forward to the seamless consolidation of the Durasert and Tethadur R&D work being done in our U.K. and our U.S. facilities in a single location. We believe this restructuring will focus our R&D efforts and facilitate product development while reducing operating expenses."
pSivida expects the site consolidation plan will reduce pre-tax operating expenses by approximately $900,000 annually, beginning in the second quarter of fiscal year 2017, ending December 31, 2016. pSivida estimates that it will record approximately $680,000 of charges associated with the plan, of which approximately $550,000 is estimated to be cash expenditures. Actual charges may vary due to various factors, including currency exchange ratios and the outcome of the consultation process. The charges are expected to be recorded primarily in the first quarter of fiscal 2017, ending September 30, 2016, with the site consolidation expected to be substantially completed during that quarter, subject to local U.K. labor requirements.