Dive Brief:
- Qiagen will close a test manufacturing plant as it discontinues two polymerase chain reaction (PCR) testing systems.
- The company will close a NeuMoDx Molecular site in Ann Arbor, Michigan, affecting 175 people, according to a state Worker Adjustment and Retraining Notification filing.
- Qiagen said in June it would discontinue the NeuMoDx 96 and 288 Molecular Systems “following the COVID-19 pandemic and changing customer needs for integrated PCR-based clinical molecular testing systems.”
Dive Insight:
Qiagen’s NeuMoDx instruments combine nucleic acid extraction, amplification and detection on a single machine. The company sells a COVID-19 PCR test that can be run on the device, as well as cartridges and reagents to support other tests.
Qiagen was considering “strategic options” for its NeuMoDx business, including finding partners or shutting down those activities, CEO Thierry Bernard said in an April earnings call.
Sales from the segment were $42 million in 2023, a 50% decrease year over year. CFO Roland Sackers attributed the decline to a high level of COVID testing revenue in 2022 during a February investor call. Qiagen ultimately decided to shutter the NeuMoDx business in June, allowing it to direct resources to its other product lines.
The company will still support existing NeuMoDx users into 2025, including maintenance, technical assistance and providing consumables, Qiagen said in an announcement.
As part of the decision, Qiagen will shut down the Ann Arbor manufacturing facility, with planned layoffs affecting all people who work there. The cuts will start in September and continue through November 2025, according to the WARN filing.
Qiagen expects a pre-tax restructuring charge of approximately $400 million, including inventory, long-term assets, commitments to customers and suppliers, severance payments and other obligations.
