The Medical Technology Blog

SurModics renews its business focus but employees set to pay the price

Whilst conducting its annual strategic planning review, SurModics, a surface modification and drug-delivery company, has come to the conclusion that the businesses in which it competes would be best served by a more focused approach. As a result, the company has honed its energy onto three units – Medical Device, Pharmaceuticals and In Vitro Diagnostics – in the hope of improving its sales and business development activities.

In order to achieve this, Eden Prairie, MN-based SurModics has taken the difficult decision to cut its workforce by around 13 per cent, in order to reduce its cost structure. It is hoped the “difficult but necessary” move will bring the company’s operating expenses more in line with its revenue. As a consequent of the redundancies, SurModics will take a one-time restructuring charge of US$1.3 to US$1.7 million in the first quarter of 2011, but expects to save around US3.0 to US$3.5 million annually.

SurModics believes that in the long-run its customers will benefit from the organisational changes, which it hopes will enhance accountability, improve efficiency and allow the company to use its resources more effectively.

In Medical Devices, SurModics’ surface modification technologies are designed to improve access, deliverability and predictable deployment of medical devices, as well as drug-delivery coasting technologies to provide site-specific drug-delivery from the surface of a medical device. End markets include coronary, peripheral, neurovascular and urology, among others.

The company’s Birmingham, AL-based Pharmaceuticals business incorporates a range of drug-delivery for injectable therapeutics, including microparticles, nanoparticles and implants. Customers of this division include pharma and biotech companies addressing a range of applications including ophthalmology, oncology, dermatology and neurology, among others.

The In Vitro Diagnostics consists of component products and technologies for diagnostic test kits and biomedical research applications. Products include microarray slide technologies, protein stabilisation reagents, substrates and antigens.

This article was kindly provided by Sophie Bracken who is the editor of Espicom’s excellent publication Drug Delivery Insight

Espicom Business Intelligence

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