Nanogen is taking steps to reduce costs and improve margins by consolidating its point of care manufacturing operations. The cost-cutting effort will transfer operations in Toronto, CA to the company’s San Diego facility; the move should be complete by year-end.
According to estimates, the consolidation will eliminate 30 jobs and reduce overall costs, starting in 2009, by approximately $3 million. For the quarter ended March 31, 2008, Nanogen’s loss from operations was $8.0 million, compared to a net loss of $11.3 million in the first quarter of 2007.
Currently, Nanogen’s qualitative cardiac products, purchased two years ago from Spectral Diagnostics, are manufactured in Toronto while development and pilot manufacturing activities for the company’s immunoassay activities are based in San Diego. The company’s Congestive Heart Failure product, based on NT-proBNP, will continue to be supplied by Princeton Bio Meditech and is not affected by these efforts.
“The decision to consolidate these operations is driven by our commitment to improving profitability and reaching positive operating cash flow,” said David Ludvigson, Nanogen’s president and COO.
Nanogen has developed a suite of molecular genetics technologies; the company’s product line includes instruments, electronic microarrays, reagents, ELISAs and rapid tests sold directly to end-users through licenses, and through a network of distributors in North America, Europe and Asia