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news.Albany Molecular Research (AMRI) has announced that it will be transitioning Discovery and Development Services (DDS) activities at its Syracuse, New York site to other sites within AMRI and will cease operations in Syracuse by the end of June 2014.
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The actions taken 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.
AMRI president and CEO William S Marth the decision the company has made, while difficult for its colleagues in Syracuse, reflects the continued evolution of AMRI’s business to better align its operations to most efficiently support its customer needs, while preserving the skills and capabilities that its customers demand as they return to greater utilization of their outsourcing partners.
"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," Marth added.
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; Cedarburg; Holywell 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-$6.50m, which includes $3.75-$4.25m in non-cash fixed asset impairment charges.
Cash charges will consist of $2.0-$2.25m 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 $1.5m.