Drug company SurModics Inc. (NASDAQ:SRDX) is cutting 13 percent of its workforce as it struggles to reverse falling sales and profits.
The company based in Eden Prairie, Minnesota, said Friday it will lay off around 30 of its 250 or so workers. SurModics, which estimates it will save between $3 million and $3.5 million a year by making the move, will take a one-time restructuring charge of $1.3 million to $1.7 million during the first quarter of 2011.
In addition, SurModics will reorganize its businesses into three units: Medical Device, Pharmaceuticals and In Vitro Diagnostics.
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“In the midst of conducting SurModics’ annual strategic planning review, it became apparent that the businesses in which we compete would be best served by a more focused business unit approach that is designed to drive improved profitability,” Chairman Robert C. Buhrmaster said in a statement. “These changes better position SurModics for both financial and operational success.”
The company is still without a permanent CEO. In June, Bruce Barclay left the company to join Hansen Medical.
Under Barclay’s tenure, the company reorganized business units, purchased land, signed licensing agreements, acquired several companies and expanded into ophthalmology and drug development.
But SurModics has little to show for those decisions. Last year, SurModics reported significant revenue losses in all of its business units, with the exception of ophthalmology.
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For the nine months of 2010, SurModics reported a profit of $574,000 on revenue of $26.3 million compared to a profit of $34.8 million on revenue of $66 million during the same period a year ago.
Since October 2009, SurMordic stock has lost more than half of its value, falling to $12 a share from $29 a share.
