AMAG Pharmaceuticals: Cambridge Divestiture Resulted in $4 to $5 Million Loss
AMAG Pharmaceuticals say they expect to incur approximately $4.0 million to $5.0 million in charges in connection with its plan to divest its Cambridge, Mass. manufacturing facility. The company also said it expects it will incur approximately $2.2 million to $2.5 million in total cash expenditures related to the divestiture.
AMAG announced plans to divest the Massachusetts facility in June, as part of a realignment of its cost structure. The company said it would also be eliminating 45 positions.
AMAG says that as of June 30, 2012, approximately $2.5 million of the charges have been recognized and approximately $1.6 million of these cash expenditures have been made.
The company says that because they plan on reducing production within the manufacturing facility, they will incur additional charges as a result of idle manufacturing capacity. Company officials will begin marketing the facility for sale later this year, and any cash proceeds from the sale of the facility will offset the money they’ve had to spend.
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