Johnson & Johnson's Cordis unit will no longer pursue the development of the Nevo sirolimus-eluting coronary stent so it can focus on other cardiovascular therapies, the company announced this morning. In addition, Cordis will stop the manufacture of Cypher and Cypher Select Plus stents by the end of the year.
As a result of these decisions, the company will close manufacturing facilities in Cashel, Ireland, where the Nevo stent was to be made, and San German, Puerto Rico, the manufacturing site for the Cypher products. The company will also consolidate its R&D project teams in Fremont, California. Overall, the company expects to reduce 900 to 1,000 positions. RTE News reports that 133 jobs will be lost in Cashel, although the company is exploring alternatives for the site, the news service quotes Bryan Mohally, VP, supply chain operations, as saying.
"We will also make every effort to help those who may be affected by any job losses in terms of redeployment within the Johnson & Johnson family of companies where possible, and the provision of outplacement assistance and services," he added.
J&J also said it expects to record an after-tax restructuring charge in the range of $500 million-$600 million in the second quarter of 2011 as a result of restructuring plans announced by Cordis.
As Reuters notes, Cypher was expected to be a big seller for Cordis; however, its sales haven't taken off--mainly because of safety issues and competition from rivals, including Abbott Laboratories Xience.