A Medical Device Daily
Dade Behring (Deerfield, Illinois) last week said that it is closing its Cupertino, California reagent product operations to streamline its organizational structure and improve profitability. The company said in a Securities & Exchange Commission filing that the facility’s closing, scheduled for mid-2008, will result in about 130 job cuts. The plant’s operations will be consolidated into the company’s Glasgow, Delaware, manufacturing facility.
Dade will pay severance, relocation and other one-time costs between $26 million and $28 million and will also incur about $1 million in non-cash costs over the next two years.
About $19 million to $21 million of the costs will be recognized as a 4Q06 pretax charge. Charges of $3 million are seen in both 2007 and 2008.
The company said that the cutback will give it annual savings of about $15 million in 2009 and beyond. Annual savings are seen at about $15 million in 2009 and future years.