AMRI shutters R&D site, moving jobs to Singapore
CRO AMRI ($AMRI) is closing up its R&D shop in Bothell, WA, and shipping the site's biology capabilities to its drug discovery operation in Singapore.
The Bothell plant employs 24 people, AMRI said in a statement, and the cost-cutting measure is designed to "address and anticipate changes in the marketplace," according to the company. AMRI expects to shut down the plant by the end of the first quarter, and it will transfer Bothell's analytic capabilities to its headquarters in Albany, NY.
The restructuring effort will eventually save about $2 million per year, AMRI said, and the move will cost about $11 million in one-time charges. And this phased realignment would seem to be just step one in a broader money-saving strategy, as AMRI CEO Thomas D'Ambra hinted.
"We will continue to focus on improving our cost structure and capabilities in order to build stronger and long-term relationships with existing and new customers," D'Ambra said in a statement.
AMRI narrowed its quarterly losses by about $3.8 million in the third quarter thanks 11% revenue growth. The outsourcer credits an increased demand for its large-scale manufacturing services for the turnaround, and the company continues to snag contracts for its SmartSourcing service platform--an all-in-one option for drugmakers.