ALBANY, N.Y., April 16, 2014 /PRNewswire/ -- AMRI (NASDAQ:
AMRI) today announced that it 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 2014. The actions taken today are consistent
with AMRI's ongoing efforts to consolidate its facility resources
to more effectively utilize its discovery and development resource
pool and to 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 chief executive officer. "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 research and
development, 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 2014 and anticipates no interruption to
current or future projects, which require Syracuse specific capabilities.
AMRI estimates that it will incur certain one-time cash and
non-cash charges related to the reduction in force and other
transition activities between $5.75 - $6.50
million, which includes $3.75 - $4.25
million in non-cash fixed asset impairment charges. Cash
charges will consist of $2.0 - $2.25
million for employee and other related costs and will
primarily be paid during the second half of 2014. The Company
expects the majority of these charges to be recorded in the second
and third quarters of 2014. AMRI expects the actions announced
today will generate annual run-rate savings of approximately
$1.5 million.
Forward-looking Statements
This press release includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that involve risks and
uncertainties. These statements include, without limitation,
statements regarding the amount and timing of charges in connection
with the restructuring; the goals of the restructuring; the
reduction in annual costs; and the timing of the spending involved
with the restructuring. The forward-looking statements in
this release involve risks and uncertainties that could cause our
actual results to differ materially from those anticipated in these
forward-looking statements, including, without limitation: if the
restructuring fails to produce the intended cost savings or is not
implemented in the contemplated timeframe, as well as those risks
discussed in the company's Annual Report on Form 10-K for the year
ended December 31, 2013 as filed with
the Securities and Exchange Commission on March 17, 2014, and the company's other SEC
filings. Numerous factors, including those noted above, may cause
actual results to differ materially from the guidance provided. The
company expressly disclaims any current intention or obligation to
update the information provided or any other forward-looking
statement in this press release to reflect future events or changes
in facts assumed for purposes of providing this guidance or
otherwise affecting the forward-looking statements contained in
this press release.
About AMRI
Albany Molecular Research, Inc. (AMRI) is a
global contract research and manufacturing organization offering
customers fully integrated drug discovery, development and
manufacturing services. For over 22 years, AMRI has demonstrated
its adaptability as the pharmaceutical and biotechnology industries
have undergone tremendous change in response to multiple
challenges. This experience, a track record of success and
locations in the United States,
Europe and Asia now provides our customers with
SMARTSOURCING™, a full range of value-added opportunities providing
customers with informed decision-making, enhanced efficiency and
more successful outcomes at all stages of the pipeline. AMRI has
also successfully partnered R&D programs and is actively
seeking to out-license its remaining programs for further
development. For more information about AMRI, please visit our
website at www.amriglobal.com or follow us on Twitter
(@amriglobal).
Contacts:
Investors: Michael Nolan, AMRI Chief
Financial Officer, 518-512-2261
Media: Gina Rothe, AMRI
Communications, 518-512-2512
SOURCE AMRI