WALTHAM, Mass., Feb. 28 /PRNewswire-FirstCall/ -- Inverness Medical Innovations, Inc. (AMEX:IMA), a global leader in rapid point-of-care diagnostic products, today announced its intention to close its Unipath facility based in Bedford, England. Unipath will commence discussions with employee representatives as part of a consultation process as required under English law. Inverness' intention would be to transfer its Bedford manufacturing operations to its low cost production facilities which are mainly in China. During the second half of 2007, Unipath manufactured approximately 53 million tests, of which approximately 46 million were supplied to our 50/50 consumer diagnostics joint venture. Inverness anticipates that the closure and transfer could be completed by year end 2009.
The intention to move represents an acceleration of Inverness' ongoing plans to significantly reduce product cost, increase margins and extend product life cycles for its women's health and professional diagnostic product lines.
Unipath employs over 400 people in the UK. Should the intended closure take place Unipath will reduce its current need for 130,000 square feet by approximately 100,000 square feet, and any remaining Inverness business would be relocated elsewhere.
In the event that the intended closure is undertaken, a charge of approximately $37 million is anticipated for all costs including but not limited to write off of equipment and leasehold improvements, severance cost and rent obligations through the lease termination in 2011. Approximately 80% of this amount will be borne by the partners in the consumer diagnostics joint venture and/or their parent companies, with the balance borne solely by Inverness. In addition to this charge, additional facilities restoration costs may be incurred in connection with exiting the lease, pending negotiations with the facility's landlord.
For more information about Inverness Medical Innovations, please visit our website at http://www.invernessmedical.com/.
By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life. A global leader in rapid point-of-care diagnostics, Inverness' products, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women's health. Inverness is headquartered in Waltham, Massachusetts. DATASOURCE: Inverness Medical Innovations CONTACT: Doug Guarino, Director of Corporate Relations, or Jon Russell, Vice President of Finance, both of Inverness Medical Innovations, +1-781-647-3900 Web site: http://www.invernessmedical.com/
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