) to hold from buy.
Analyst Stefan Loren says the company's restructuring plans include the closure of its Redwood City, CA and Cambridge, England facilities, as well as 31% reduction in its workforce, or about 128 employees. He notes the majority of the restructuring is a result of less than favorable prospects for the company's ADMET technology.
He says the restructuring will result in a charge of about $12 million in the fourth quarter to account for severance and facility closing costs, but should result in annual savings of approximately $12 million. Loren narrowed his 98 cent 2002 loss estimate to a 79 cent loss, and cut the $1.25 2003 loss estimate to an 80 cent loss as the result of the restructuring benefit.