SurModics to cut 9 percent of jobs; CFO is leaving

  • Updated: August 23, 2011 - 9:46 PM

The Eden Prairie biopharmaceutical company SurModics Inc. said Tuesday that it is cutting 9 percent of its workforce, including its chief financial officer.

SurModics, which had 215 employees as of Dec. 1, said CFO Philip Ankeny and human resources Vice President Jan Webster are leaving. SurModics also said it will consolidate one of its manufacturing operations from Owings Mills, Md., to its corporate headquarters.

"While a workforce reduction is always a difficult decision, it was necessary to enable us to achieve our objectives," CEO Gary Maharaj said.

Maharaj said the company will continue to make research and development investments to drive growth in its medical device and in-vitro diagnostics businesses. The reductions and the associated consolidation of manufacturing operations are expected to save $1.7 million to $2 million each year, SurModics said.

As a result of the changes, SurModics said it will take a one-time charge of $1.1 million to $1.4 million in the fourth quarter of its fiscal year.

The company named Timothy Arens as vice president of finance and interim CFO. Webster's duties will be taken over by Bryan Phillips, senior VP of legal and human resources.

SurModics expects to lose business because of a decision by Johnson & Johnson to stop making drug-coated heart stents. SurModics receives royalties on the polymer coating of those stents.

The stock closed Tuesday at $10.42 a share, up 40 cents, before the announcement.

WENDY LEE

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