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Biotech / Medical : MGI Pharma MOGN New patents, anti cancer -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (1719)	10/26/2006 10:24:06 AM
From: tuck	Read Replies (1) \| Respond to of 1826

>>10-26-06 0829ET DJ MGI Pharma Begins Organizational Restructuring >MOGN MGI Pharma Inc. (MOGN) said Thursday that it expects about $5 million in charges related to an organizational restructuring plan aimed at aligning the company's workforce and resources with its operational objectives. According to a filing with the Securities and Exchange Commission, the costs include $3 million in costs for severance benefits and the balance for other costs including staff relocations and interim stay-on incentives. The company expects to cut 56 positions, or 10% of its total workforce, and relocate about 35 positions in connection with the consolidation of its drug development functions at one location. The company will also consolidate operations in Baltimore to one facility from two. The reduced cost structure is expected to result in about $6 million in annual compensation expense savings in 2007 and about $7 million in savings in future years. The Bloomington, Minn., company said it expects to incur additional costs at the sites where it will consolidate, but that it can't estimate the charges or savings it expects. MGI Pharma's management approved the plan last Friday and it implemented it Tuesday. Shares of the biopharmaceutical company closed at $19.03 Wednesday. -Yogita Patel, Dow Jones Newswires; 202-862-1343; yogita.patel@dowjones.com<< Cheers, Tuck