Albany Molecular Research (AMRI), a global contract research and manufacturing organization, will be transitioning Discovery and Development Services (DDS) activities at its Syracuse, N.Y., site to other sites within AMRI and will cease operations in Syracuse by the end of June.

The actions are consistent with AMRI's ongoing efforts to consolidate its facility resources to more effectively utilize its discovery and development resource pool and further reduce its facility cost structure.

"The decision we have made, while difficult for our colleagues in Syracuse, reflects the continued evolution of AMRI's business to better align our operations to most efficiently support our customer needs, while preserving the skills and capabilities that our customers demand as they return to greater utilization of their outsourcing partners," said William S. Marth, AMRI's president and CEO. "We remain committed to our total integrated discovery and development services platform and the capabilities for which Syracuse has become distinguished, and we will be transitioning and consolidating those activities to other sites within AMRI."

AMRI's Syracuse Research Center provides services to the global pharmaceutical industry including chemical process R&D, custom chemical synthesis and scale-up of pharmaceuticals intermediates and final products. As part of the transition, Syracuse DDS capabilities and some employees will be transferred to a number of AMRI facilities, including Albany, N.Y.; Cedarburg, Wis.; Holywell, U.K.; and Hyderabad, India. AMRI expects to finalize transition plans by the end of April and anticipates no interruption to current or future projects that require Syracuse specific capabilities.

AMRI estimates it will incur certain one-time cash and non-cash charges related to the reduction in force and other transition activities between $5.75 million and $6.5 million. The company expects the majority of these charges to be recorded in the second and third quarters of 2014. AMRI expects the actions announced will generate annual run-rate savings of approximately $1.5 million.