Albany Molecular Research (AMRI) took steps in the fourth quarter of 2011 to align the business to current and expected market conditions, including reducing the company’s workforce, right size capacity and reduce operating costs for 2012.
The workforce reduction primarily affects personnel based in AMRI’s U.S. operations and includes positions associated with R&D. The decision to wind down all R&D activities was announced in November 2011.
AMRI also will be terminating a lease of one of its U.S. facilities, reducing annual operating expenses. The company expects these actions will result in annuals savings approximating $10-11 million (including $7 million relating to the cessation of R&D activities). Savings are expected to be reflected in the first quarter of 2012.
“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,” said Thomas E. D’Ambra , AMRI president, CEO and chairman. “These actions will place AMRI in a more cost-competitive position while ensuring we continue to provide the highest quality service to our clients.”
In addition, AMRI filed a shelf registration statement with the Securities and Exchange Commission, which, once effective, will allow AMRI to offer its common stock, preferred stock and warrants at an aggregate public offering price of up to $50 million.