Qiagen lays off 175 employees and closes PCR testing facility in Michigan

Diving certificate:

• Qiagen will close a test manufacturing facility as it discontinues production of two polymerase chain reaction (PCR) test systems.
• The company will Closing a NeuMoDx Molecular Site in Ann Arbor, Michigan, 175 people affectedaccording to a government notice on the adaptation and retraining of workers.
• Qiagen said in June that it would stop the NeuMoDx 96 and 288 molecular systems “following the COVID-19 pandemic and changing customer needs for integrated PCR-based clinical molecular testing systems.”

Diving insight:

Qiagen’s NeuMoDx instruments combine nucleic acid extraction, amplification and detection in a single device. The company sells a COVID-19 PCR test that can be performed on the device, as well as cartridges and reagents to support other tests.

Qiagen was Examination of “strategic options” for its NeuMoDx business, including finding partners or discontinuing those activities, CEO Thierry Bernard said in a quarterly earnings conference call in April.

The segment’s revenue in 2023 was $42 million, a 50% decrease compared to the previous yearChief Financial Officer Roland Sackers attributed the decline to high revenues from COVID tests in 2022 during an investor conference in February. Qiagen ultimately decided in June to discontinue the NeuMoDx business in order to focus resources on its other product lines.

The company will continue to support existing NeuMoDx users through 2025, including maintenance, technical support and supply of consumables, Qiagen said in an announcement.

As part of the decision, Qiagen will close its manufacturing facility in Ann Arbor. The planned layoffs will affect all employees there. The cuts will begin in September and last until November 2025, the WARN notice states.

Qiagen expects pre-tax restructuring charges of approximately $400 million, including inventory, long-term assets, commitments to customers and suppliers, severance payments and other obligations.