OSI Pharmaceuticals Announces Consolidation of U.S. Operations
July 07 2009 - 4:01PM
Business Wire
OSI Pharmaceuticals, Inc. (NASDAQ: OSIP) announced today plans
to consolidate its U.S. operations onto a single campus located in
Ardsley, a community located in the town
of�Greenburgh�in�Westchester County, New York. The Company has
signed an agreement to purchase a 43 acre site, which consists of
~400,000 sq.ft. of existing office and laboratory space for $27
million. Additional capital and one time expenses will be incurred,
mainly during the latter part of 2009 and first half of 2010.
The Company announced that it expects to realize in excess of
$15 million in yearly operating synergies upon completion of the
consolidation, which is anticipated by the fourth quarter of
2010.
�The past ten years has been a remarkable journey as the Company
has successfully brought its first oncology product, Tarceva�, to
market and taken the business profitable,� stated Colin Goddard,
Ph.D., Chief Executive Officer of OSI Pharmaceuticals.
�None-the-less, we have recognized that we will only truly capture
the full strategic value of our oncology franchise if we simplify
our business by bringing together all the elements of our U.S.
operations onto a single site. After an extensive and highly
competitive process involving the exploration of options in
multiple different states, we have identified a campus that will
represent a first-rate facility for our company and provide for all
foreseeable expansion needs over the next several years. We are
delighted that OSI will remain in New York State and we look
forward to being an integral part of a growing cluster of quality
biotech companies in Westchester County.�
The Company anticipates initiating the consolidation of
approximately 350 current U.S. employees from its facilities in
Melville and Farmingdale, NY, Boulder, CO, and Cedar Knolls, NJ in
the second half of this year. OSI will receive incentives from New
York State in connection with this move, with further potential
incentives as the business continues to grow over the next five
years. OSI will continue to operate its diabetes/obesity franchise
in Oxford, England.
About OSI
Pharmaceuticals
OSI Pharmaceuticals is committed to "shaping medicine and
changing lives" by discovering, developing and commercializing
high-quality, novel and differentiated targeted medicines designed
to extend life and improve the quality of life for patients with
cancer and diabetes/obesity. For additional information about OSI,
please visit http://www.osip.com.
This news release contains forward-looking statements. These
statements are subject to known and unknown risks and uncertainties
that may cause actual future experience and results to differ
materially from the statements made. Factors that might cause such
a difference include, among others, OSI's and its collaborators'
abilities to effectively market and sell Tarceva and to expand the
approved indications for Tarceva, OSI�s ability to protect its
intellectual property rights, safety concerns regarding Tarceva,
competition to Tarceva and OSI�s drug candidates from other
biotechnology and pharmaceutical companies, the completion of
clinical trials, the effects of FDA and other governmental
regulation, including pricing controls, OSI's ability to
successfully develop and commercialize drug candidates, and other
factors described in OSI Pharmaceuticals' filings with the
Securities and Exchange Commission.
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