By Stephen Nakrosis
Abbott Laboratories on Thursday said it approved a restructuring plan last month "to align its manufacturing network for Covid-19 diagnostic tests with recent changes in projected testing demand."
In a filing with the U.S. Securities and Exchange Commission, the company said the changes in projected testing demand have been driven by several factors, including reductions in cases in the U.S. and other major developed countries and accelerated rollout of Covid-19 vaccines globally.
The company also said it estimates pretax costs to implement its plan to be about $550 million to $700 million. "The costs are expected to be incurred during the remainder of 2021 with the majority of the costs expected to be recorded in the second quarter of 2021," Abbott said, adding "The costs will be treated as specified items."
Earlier this month, Abbott updated to its financial outlook for the full year. At that time, Robert B. Ford, the company's president and chief executive, said "We've recently seen a rapid decline in Covid-19 testing demand and anticipate this trend will continue, which led us to adjust our full-year guidance."
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(END) Dow Jones Newswires