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BioSource to Restructure European Operations

December 17, 1996|BARBARA MURPHY

Camarillo-based BioSource International announced it will restructure certain operations of BioSource Europe, its wholly owned subsidiary headquartered in Fleurus, Belgium.

BioSource said the restructuring, primarily affecting operations in Belgium and Italy, is intended to eliminate research and development functions that are duplications of the company's United States operations and to transition its direct-sales strategy in Italy to an exclusive distribution arrangement.

The restructuring, which includes limited staff reductions, is expected to result in one-time charges estimated at less than 10 cents a share, which will be realized in the fourth quarter of 1997.

"When we acquired the in-vitro diagnostics business of Medgenix Diagnostics earlier this year, we indicated that we expected to incur a significant amount of expense initially in connection with the consolidation of the research and development activities of the two companies," said James H. Chamberlain, BioSource president and CEO.

With the contemplated restructuring charge, which will result primarily from severance payments for the elimination of staff, BioSource officials said the company will fall short of analysts' expectations for per-share earnings for 1996, although it still expects to dramatically improve its operating results in comparison to 1995.

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