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UPDATE 1-Inverness Medical to close facilities, cut jobs
March 18, 2008 / 11:33 PM / 10 years ago

UPDATE 1-Inverness Medical to close facilities, cut jobs

(Recasts; adds details)

March 18 (Reuters) - Inverness Medical Innovations Inc IMA.A said it would close two facilities in San Francisco and a manufacturing plant in Colorado resulting in some job cuts as it seeks to reduce costs and improve margins.

The maker of home pregnancy tests and fertility-monitoring kits expects to cut about 56 positions, or 80 percent of the workforce at its manufacturing plant in Louisville, Colorado, which produces the BioStar OIA product lines.

The San Francisco facilities, which house the Cholestech and the HemoSense operations, currently employ about 275 people.

Staffing levels for these operations would also be reduced as they are consolidated with existing operations in San Diego over the next 18 months, the company said.

The company expects restructuring charges of about $12 million related to the transfer of the San Francisco operations and about $9.5 million due to the Colorado plant closure.

Inverness expects manufacturing savings of about $10 million annually beginning in the second half of 2009.

The company’s BioStar line comprises point of care and rapid diagnostics products to diagnose various infectious diseases and to screen for medical disorders. The Cholestech operation manufactures a blood cholesterol monitoring system while the HemoSense operation manufactures hand-held blood coagulation monitoring systems.

Shares of the company closed up 6 percent at $28.86 Tuesday on American Stock Exchange. (Reporting by Esha Dey in Bangalore; Editing by Deepak Kannan)

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