AngioDynamics consolidating international manufacturing operations to New York

Monday, April 3, 2017

Source: Times Union

AngioDynamics is consolidating some of its manufacturing operations to New York as it closes two of its four factories.

The drug maker, which is among the largest biotechnology employers in upstate New York, announced the move in a call with shareholders Thursday.

The company estimates closing the two facilities, located in Manchester, Georgia and Denmead, United Kingdom, will cost between $6.2 million and $7.7 million and take up to 18 months, but will save the company roughly $5 million in initial overhead costs. CEO Jim Clemmer said year-to-year savings should be around $5 million, though “we haven’t built those into the calculations yet, though.”

It was unclear Monday what that means for local operations. The company employs roughly 850 people in New York and is headquartered in Latham, with manufacturing in the Glens Falls area.

The plan follows a strategy employed by the company’s new leadership to free up cash flow, streamline its supply chain and increase revenue. The company has already eliminated more than 900 products this year, Clemmer told shareholders Thursday.

“I’ve talked about three goals: grow our revenue, improve our profitability and generate strong amounts of cash flow,” said Clemmer, who until last year headed Covidien’s $2 billion medical supplies division. “We are currently delivering on the second two.”

The company’s third quarter revenue dipped, from $87.4 million to $85.6 million, but it is still on pace to match the roughly $352 million in 2016 revenue.

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AngioDynamics consolidating international manufacturing operations to New York

Monday, April 3, 2017

Source: Times Union

AngioDynamics is consolidating some of its manufacturing operations to New York as it closes two of its four factories.

The drug maker, which is among the largest biotechnology employers in upstate New York, announced the move in a call with shareholders Thursday.

The company estimates closing the two facilities, located in Manchester, Georgia and Denmead, United Kingdom, will cost between $6.2 million and $7.7 million and take up to 18 months, but will save the company roughly $5 million in initial overhead costs. CEO Jim Clemmer said year-to-year savings should be around $5 million, though “we haven’t built those into the calculations yet, though.”

It was unclear Monday what that means for local operations. The company employs roughly 850 people in New York and is headquartered in Latham, with manufacturing in the Glens Falls area.

The plan follows a strategy employed by the company’s new leadership to free up cash flow, streamline its supply chain and increase revenue. The company has already eliminated more than 900 products this year, Clemmer told shareholders Thursday.

“I’ve talked about three goals: grow our revenue, improve our profitability and generate strong amounts of cash flow,” said Clemmer, who until last year headed Covidien’s $2 billion medical supplies division. “We are currently delivering on the second two.”

The company’s third quarter revenue dipped, from $87.4 million to $85.6 million, but it is still on pace to match the roughly $352 million in 2016 revenue.

View All News »