SurModics (SRDX) Reorganizes Into 4 Business Units
More News related to SRDX
- SurModics (SRDX) Misses Q4 EPS by 4c
- SurModics Reports Fourth Quarter and Fiscal Year 2009 Results
- Trading Radar for 11/04: Cisco (CSCO), Comcast (CMCSA), Tyco (TEL), Molson Coors (TAP) Report
- SurModics and NuPathe Partner to Develop Novel Long-Acting Parkinson's Treatment
- SurModics to Webcast Fourth Quarter and Fiscal Year 2009 Earnings Conference Call November 4
More News related to Corporate News
- S&P Announces Changes to US Index: CMN for NTG, CVGW for STSA
- Kinross (KGC) Enters Agreement for $125M Letter of Credit Facility
- Endo Pharma (ENDP) Announces Settlement with LecTec Over Outstanding Patent Litigation
- Trubion Pharma (TRBN) Announces Two Presentations of TRU-016 Product at 2009 ASH Meeting
- S&P Revises Outlook on Sirius XM (SIRI) from Stable to Positive
SurModics, Inc. (Nasdaq: SRDX) today announced changes designed to improve the Company's ability to meet the growing needs of its customers while more effectively managing its operations and cost structure.
SurModics will now be organized into clinically and market focused business units that will improve the visibility, marketing and adoption of the Company's broad array of technologies within specific markets and help its customers in the medical device, pharmaceutical and life science industries solve unmet clinical needs. With these changes, SurModics will have four business units: Cardiovascular, Ophthalmology, In Vitro Technologies, and Brookwood Pharmaceuticals. The Drug Delivery, Hydrophilic Technologies, Regenerative Technologies, and Orthopedics business units will be eliminated, and those employees will be reassigned within the Company.
Further, a new centralized research and development function has been formed to serve the needs of the Company's Minnesota and California operations. Brookwood Pharmaceuticals' R&D operations will remain unchanged.
Along with these organizational changes, SurModics is also implementing cost-cutting initiatives, including reducing its workforce by approximately 5% and vacating its leased facility in Eden Prairie, Minnesota. As a result of these cost-cutting initiatives, the Company is expected to take a one-time restructuring charge of approximately $1.5-$2.3 million in Q109. Also in connection with these initiatives, SurModics expects to save approximately $2 million on an annualized basis. The effect of the reduction in force and the other cost-cutting initiatives was already accounted for when the Company discussed its outlook for FY09 on its recent earnings call. This change in organization structure is also expected to require updated segment reporting which differs from historical practice. Any changes to our segment reporting would likely be introduced with first quarter results.
SurModics, Inc. engages in the development, manufacture, and sale of surface modification and drug delivery technologies to the healthcare industry.
Related Categories
Corporate NewsStocks Mentioned
-0.14Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
