Swedish Orphan Biovitrum AB (publ) (SE) -Decision on Cost Savings to Create Profitable Growth
Published: 08:25 CEST 29-03-2011 /Thomson Reuters /Source: Swedish Orphan Biovitrum AB (publ) /XSTO: SOBI /ISIN: SE0000872095
STOCKHOLM, Sweden, March 29, 2011--The Board of Directors of Swedish Orphan Biovitrum (Sobi) has decided on a number of measures to reduce the company's costs by approximately SEK 100 million on an annual basis. The savings will be generated gradually during 2011 with full effect as of 2012.
Cost savings and actions to improve efficiency will be implemented in all functions. The measures are expected to involve a reduction of approximately 70 positions, most of which will be in preclinical development, CMC (Chemistry, Manufacturing and Controls) and within Manufacturing and Quality Control/Quality Assurance in Stockholm.
Despite the reduction in capacity in preclinical development, the goal is to retain expertise and competence with the option to increase resources in the future. In order to increase flexibility and reduce fix costs, external resources will be used when needed. These changes will not affect clinical development projects that are currently in progress.
Negotiations will now begin with the relevant trade unions.
"By taking these steps we will increase flexibility and reduce costs. I regret that this will also involve staff cuts, but unfortunately this is necessary in order to secure Sobi's future profitability. We have a number of product launches in progress and several late-stage development projects with great market potential and these projects require large resources. In addition, we are creating possibilities for growth through business development and geographical expansion," says CEO Kennet Rooth.
For more information, please contact: Kennet Rooth, CEO Phone:+46 8 697 20 00
About Swedish Orphan Biovitrum (Sobi) Sobi is a Swedish based niche specialty pharmaceutical company with an international market presence. The company is focused on providing and developing specialist pharmaceuticals for rare disease patients with high medical needs. The portfolio consists of about 60 marketed products and an emerging late stage clinical development pipe-line. Our focus areas are: hemophilia, inflammation/autoimmune diseases, fat malabsorption, cancer supportive care and inherited metabolic disorders. In 2010 Sobi had revenues of about SEK 1.9 B and approximately 500 employees. The share (STO: SOBI) is listed on NASDAQ OMX Stockholm. For more information please visit www.sobi.com.
Swedish Orphan Biovitrum may be required to disclose the information provided herein pursuant to the Swedish Securities Markets Act. The information was provided for public release on March 29, 2011 at 8:25 a.m. CET.
Sobi PR Decision on Cost savings in PDF format http://hugin.info/134557/R/1501091/436430.pdf
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Posted: March 2011