Chiron Corporation To Recognize Write-Down on Manufacturing Facility.EMERYVILLE, Calif.--(BW HealthWire)--Oct. 3, 1997--Chiron Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHIR CHIR Chiricahua National Monument (US National Park Service) ) reported today that it will take a charge against earnings in the third quarter ended September 28, 1997 for the reduction of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its idle pharmaceutical fill and finishing facility in Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. to its fair value. Although final appraisal of the facility is not yet complete, management estimates the charge will exceed $25 million. Chiron is investigating options concerning the Puerto Rico facility, including possible sale, in connection with its comprehensive initiative to establish more efficient operations. This initiative focuses broadly on Chiron's global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. and processes with a view towards streamlining the Company's organization and achieving operating efficiencies. Management estimates that options currently available to the Company concerning the facility require an adjustment to the facility's carrying value during the third quarter of 1997. Such an adjustment will have a material adverse impact on Chiron's third quarter and annual results of operations. The Puerto Rico facility was originally outfitted by Chiron as a second manufacturing site of Betaseron(r) (interferon beta-1b interferon beta-1b Betaferon (UK), Betaseron Pharmacologic class: Biological response modifier Therapeutic class: Antiviral, immunoregulator Pregnancy risk category C Action) for Berlex Laboratories, Inc. Manufacturing process improvements and the introduction of a competing product have eliminated the need for this facility to support Betaseron(r) (interferon beta-1b) needs. Further, the cumulative impact on Chiron's overall manufacturing needs of recent product developments has prompted management to conclude that existing manufacturing capacity, excluding the Puerto Rico facility, is adequate to meet future needs.Chiron will report its results for the third quarter during the week of October 20, 1997. Chiron Corporation is a science-driven, market-directed healthcare company that combines diagnostics, vaccine and therapeutic strategies for controlling disease. This news release may contain forward-looking statements that involve risks and uncertainties including such factors, among others, as global manufacturing plans, needs and capacity and the future success of product development programs. A full discussion of the Company's operations and financial condition, including factors that may affect its business and future prospects, is contained in documents the Company files with the SEC, such as Form 10-Q Form 10-Q See 10-Q. and 10-K reports. These documents identify important factors that could cause the Company's actual performance to differ from current expectations. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events. CONTACT: Chiron Corporation Jim Knighton, Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. 510/923-6055 |
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