BOSTON Nov 9 Ameridose LLC, an affiliate of the
New England Compounding Center at the heart of the deadly U.S.
meningitis outbreak, is laying off about 90 percent of its
The action follows a suspension of its operations amid
concerns about the sterility of its drug-mixing practices.
The Westborough, Massachusetts-based company notified
employees in a letter on Friday that while it expects to resume
operations at some point, "we have now determined that because
of the continued inspection by state and federal authorities it
may be necessary to resume operations at a reduced level."
Ameridose was closed on Oct. 10 to allow state and federal
investigators to inspect its facilities. The company is
scheduled to remain closed until Nov. 19. Ameridose has the same
owners as NECC, which distributed a tainted steroid that has
been linked with 31 deaths.
About 650 employees at Ameridose will be affected, as well
as 140 employees at Medical Sales Management, a company which
provides sales, technology and human resources support to
Ameridose and is owned by the same people. About 200 of the
layoffs will be permanent, according to the company.
The layoffs will become effective as of Nov. 30.
"In our current circumstances, our business prospects are
very difficult to predict, and it is our hope that your layoff
will be temporary and that you will be brought back to work,"
the letter from the company's human resources director said. "It
is important that you know we are working diligently and
cooperatively with our regulators to address any issues they
have raised, and with the goal of resuming Ameridose's
operations as soon as possible."