The company hopes to conserve assets and retain key employees as it continues to address pending regulatory issues.Cranbury-based generic drugmaker Able Laboratories (Nasdaq: ABRX) said Thursday that it is making further staff reductions, beyond the 200 layoffs already announced, as it attempts to address quality-control issues and restart manufacturing operations.
Able anticipates laying off staff in order to conserve assets and assist it in retaining key employees as it continues to address pending regulatory issues, evaluates its strategic alternatives and formulates and executes its plan for future operations.
As the company previously announced, the disruption in its operations and reduction in its workforce is expected to have a material adverse effect on its results of operations and financial position. At this time, Able can give no assurance as to when it will be able to resume manufacturing operations.
Able”s woes started earlier this year when it recalled a number of drug batches for potency issues, chemical instability and labeling errors. That led the company to review its laboratory procedures and eventually led to the manufacturing halt.
At the close of trading, Able shares were down $0.32 to $4.01.