Luminex Announces Layoffs
On a conference call, Luminex stated that it plans to spin off the Newborn Screening business to a third party with more channel strength in public health. The business consists of the NeoPlex4 immunoassay, NeoPlex System, Tecan liquid handling system and the Australia-based BSD business, which provides automation for punching dried-blood cards. Mr. Balthrop cited uncertainty in the US regulatory process as one reason for the decision. The annualized savings are about $0.10 per share on a tax-adjusted basis.
Austin, TX 8/7/13; Washington, DC 7/7/13—Luminex has announced a restructuring plan, including a 5% reduction in its workforce. The plan will affect the Assay and Related Products’ Newborn Screening Group, as well as the company’s Brisbane, Australia, office, which will be closed. The changes are expected to result in annualized cost savings of $5–$6 million, with $3.54 million in savings related to selling, general and administration operations, and $1.5–$2 million in savings related to R&D. “These changes reflect an increased focus on our growth initiatives and our ongoing strong commitment to a leadership position in molecular diagnostics and our partnership franchises,” stated Luminex President and CEO Patrick J. Balthrop. As part of the restructuring, the company also plans to make investments in its molecular diagnosis business. A total restructuring charge of $7–$8 million is expected to be recorded by March 31, 2014.
