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Chester County medical-equipment maker will lay off 250

West Pharmaceutical Services Inc. of Lionville said today it will lay off 250 employees - 13 percent of its tech-group workforce.

    by By December 2008, West will combine two production operations into one facility in Scottsdale, Ariz., and combine other production, engineering and administrative operations in North America, it said. The layoffs will occur throughout the tech-group’s workforce., INQUIRER STAFF, Inquirer
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West Pharmaceutical Services Inc. of Lionville said today it will lay off 250 employees - 13 percent of its tech-group workforce.

The move was prompted by Pfizer Inc.'s October decision to discontinue Exubera, an inhaled insulin product for which West made the inhalation device, West said in a statement.

The company expects to take a restructuring charge of $12 million to pay severance costs and to account for fixed asset write-downs. It said it will eventually see $7 million in annual operating savings.

The charge will amount to 5 cents per share this year, and 19 cents per share in 2008, the company estimated.

West also will take an impairment charge of between $11 million and $13.1 million in the fourth quarter as a result of the lost contract for the inhalation devices.

Shares were down 10 cents to $36.94 in noon trading on the New York Stock Exchange.

West makes components for injectable drug delivery, and products for the personal care, food and beverage markets.