Restructuring
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12 Months Ended |
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Dec. 31, 2012
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Restructuring |
16. Restructuring
In
December 2012 the Company announced the closure of its tissue
engineering facility in Abano Terme, Italy due to the inability to
meet strict regulatory standards, effective January 1, 2013,
established by the EMA for Advanced Therapy Medicinal Products. The
restructuring plan primarily involves a workforce reduction as well
as associated asset abandonments. We recorded restructuring and
impairment charges in the fourth quarter of approximately $2.5
million. Of the total restructuring and impairment
charges related to our tissue engineering operation,
approximately $1.2 million related to the noncash termination
and related impairment of an IPR&D project, $0.3
million related to the noncash disposal of property and equipment,
and $0.1 million related to the disposal of inventory. The
remaining $0.9 million relates to cash payments anticipated to
occur in 2013, primarily for employee termination costs. We expect
to substantially complete the restructuring plan by the end of the
first six months of 2013.
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