Eden Prairie, MN-based SurModics ($SRDX) will cut 9% of its workforce as part of an effort to realign its business. CFO Philip Ankeny and Jan Webster, VP, Human Resources are among those receiving pink slips. The company says it will maintain its commitment to its medical device and in vitro diagnostics businesses.
SurModics will also consolidate its BioFX product manufacturing operations from Owings Mills, MD into its corporate headquarters. The Minnesota facility is now producing and shipping BioFX branded products, according to a SurModics statement.
As a result of these moves, the company expects to take one-time charges of approximately $1.1 million to $1.4 million in the fourth quarter. But it does not anticipate the changes to have an impact on its ongoing efforts to explore potential strategic alternatives for its pharmaceuticals business.
"While a workforce reduction is always a very difficult decision, it was necessary to enable us to achieve our objectives," explains CEO Gary Maharaj in a statement. "We thank our affected employees for their contributions and wish them well in their future endeavors."
As the Minneapolis-St. Paul Star Tribune notes, SurModics will probably lose business as a result of Johnson & Johnson's ($JNJ) decision to stop making drug-coated heart stents. The Eden Prairie company had been receiving royalties on the stents' polymer coating.
- see the SurModics release
- check out the Star-Tribune report