Theragenics Corporation(R) Restructures to Focus on Core Business Units

15-Aug-2005

Theragenics Corporation(R) announced a plan to restructure the Company to focus on its two main business sectors: the primary product line of brachytherapy seeds and its medical device product lines through its newly acquired subsidiary, CP Medical.

Theragenics will restructure and direct attention to strengthening its positions within its core brachytherapy seed business, which has seen a 13 percent sales increase for the first six months of 2005, and its CP Medical business, which helped Theragenics achieve an overall 26 percent increase in sales for the same six-month period versus the previous year. The restructuring will result in closure of the Company's facility in Oak Ridge, Tenn. and its Newton Terrace facility in Buford, Ga. Theragenics is seeking a buyer for its interests in the Oak Ridge facility. The Company will continue to operate from its Bristol facility in Buford, Ga.

The restructuring, including the closure of the two facilities, will result in the elimination of 23 jobs within the Company. The Company will also discontinue its radiochemical activities, and its research and development activities relating to the plasma separation process technology and the vascular, macular degeneration, and breast cancer areas. The Company intends to offer the intellectual property and clinical data related to these R & D efforts to buyers or licensees that express an interest in carrying on this promising research. Theragenics will continue its R&D related to CP Medical products, with five products currently in development, three of which are anticipated to be launched in the near future.

As a result of the restructuring, Theragenics expects to record pre-tax, non-cash charges in the second half of 2005 of approximately $33.0 million to $36.0 million, consisting of impairment of the PSP facility, six cyclotrons, other related long-term assets, write down of inventory and other assets, and contract termination costs related to its Oak Ridge land lease.

https://www.bionity.com/en/news/48291/theragenics-corporation-r-restructures-to-focus-on-core-business-units.html