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.