Company to Evaluate Options to Enhance Customer Service and Improve Efficiency
ALBANY, N.Y., Jan. 9, 2012 /PRNewswire/ -- AMRI (NASDAQ: AMRI), a global contract services organization with services spanning the entire R&D continuum, today announced that as part of its ongoing global operations review to improve efficiency and customer service, it is considering a restructuring of its European operations focused on a reduction of the workforce in the second quarter of 2012 and potential further actions at its Budapest, Hungary operation.
As a result of shifting market preferences related to the preferred co-localization of integrated drug discovery activities, which have impacted demand for the Company's service at this facility, AMRI is considering closing its operations in Hungary and transitioning many of the services offered at the site into other AMRI global locations, including Singapore and Hyderabad, India. Current customer programs at AMRI Hungary may also benefit from this global integration. Any such restructuring could affect up to approximately 100 employees at the Budapest location.
The Company is commencing consultation with employee representatives to consider ways of avoiding or reducing the number of proposed redundancies, and mitigating the consequences of the redundancies. The Company anticipates providing additional detail regarding these proposed actions in approximately one month or in conjunction with the Company's year-end 2011 financial results.
The contemplated actions further demonstrate AMRI's commitment to taking the necessary actions to reassess its global footprint and strengthen its core contract research and manufacturing business by focusing its resources to improve efficiency and respond to the demands of the marketplace.
Albany Molecular Research, Inc. (AMRI) is a global contract research and manufacturing organization with more than twenty years experience providing customers fully integrated drug discovery, development, and manufacturing services. AMRI supplies a broad range of services and technologies that support the discovery and development of pharmaceutical products and the manufacturing of API and drug product for existing and experimental new drugs. With locations in the United States, Europe, and Asia, AMRI maintains geographic proximity and flexible cost models. AMRI has also historically leveraged its drug-discovery expertise to execute on several internal drug discovery programs, which have progressed to the development candidate stage and in some cases into Phase I clinical development. AMRI has successfully partnered certain programs and is actively seeking to out-license its remaining programs to strategic partners for further development.
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include, but are not limited to, statements regarding the company's estimates related to the restructuring costs and potential benefits, statements regarding the outcome of any actions taken to mitigate the effect of redundancies in Hungary, statements about the transfer of customer programs to Singapore or India, and statements regarding the strength of the company's business and prospects, statements regarding the actions taken to improve operating performance, and statements concerning the company's momentum and long-term growth. Readers should not place undue reliance on our forward-looking statements. The company's actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which the company may not be able to predict and may not be within the company's control. Factors that could cause such differences include, but are not limited to trends in pharmaceutical and biotechnology companies' outsourcing of chemical research and development, including softness in these markets, the company's ability to enforce its intellectual property and technology rights, the company's ability to obtain financing sufficient to meet its business needs, the company's ability to transfer customer projects from Hungary to other sites and the willingness of customers to make such transfers, the company's ability to take advantage of proprietary technology and expand the scientific tools available to it, the ability of the company's strategic investments and acquisitions to perform as expected, as well as those risks discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2010 as filed with the Securities and Exchange Commission on March 16, 2011, and the company's other SEC filings. The company expressly disclaims any current intention or obligation to update any forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.