AMRI has plans to restructure its U.S. operations and to expand its services in Asia and Europe. Cost reduction initiatives for U.S. operations are aimed at saving approximately $7 million in 2010 and $10 million beginning in 2011. The U.S. workforce will be reduced by approximately 10%, or an estimated 80 jobs. Operations at the company’s research lab facilities in Rensselaer, NY, will cease.The company will record a restructuring charge of $3-5 million as a result. The company also anticipates investing more than $30 million on international facility and capability expansions and will add approximately 180 positions in Asia and Europe.

AMRI chairman, president and chief executive officer Thomas E. D’Ambra said, “These actions reflect the focus by our customers on cost of services amid a highly competitive environment coming primarily from Asia. This has led to a continued shift in demand for AMRI’s services from the U.S. to lower cost resources in Asia and Europe. While we remain cautiously optimistic about a return in demand for contract research outsourcing by the biopharmaceutical industry, softness in the US market has extended beyond our expectations. The actions we are taking today are part of our on-going commitment to tightly manage costs while also managing our infrastructure to support future growth and development.”

Dr. D’Ambra continued, “We regret the need to take the actions we announce today. We are very grateful for the dedication and contributions of the employees who will be leaving AMRI and we are committed to providing them with resources and services to help them through this difficult transition. The AMRI that moves forward will continue to stay focused on our strategy to support our customers’ needs by expanding services, technologies, expertise and geographic options.”

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