WuXi PharmaTech to Discontinue US Biologics Manufacturing Operations
WuXi PharmaTech Inc. (Shanghai, China) will discontinue its US biologics manufacturing operations as of December 31, 2008.
WuXi PharmaTech Inc. (Shanghai, China) will discontinue its US biologics manufacturing operations as of December 31, 2008. WuXi will then dedicate its Philadelphia, PA, facility to the company’s biologics testing, cell banking, and cell therapy services. Approximately 100 biologics manufacturing and supporting positions at the Philadelphia facility will be eliminated through workforce reduction and employee attrition.
Through this move, WuXi expects to record cash restructuring charges, estimated to total approximately $2.5 to $3.5 million, consisting primarily of severance and other employee-related charges to be payable over the next few months; and non-cash charges for impairment of certain fixed and intangible assets, including goodwill. WuXi is currently working with external consultants to determine an estimate for the non-cash impairment charges as a result of the restructuring.
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