Updated 6/24/2014 at 5:20 p.m. EST with comments from CareFusion.
CareFusion took over the plant when it acquired GE Healthcare (NYSE:GE) subsidiary Vital Signs for $500 million late last year, but after a "detailed evaluation" decided to move manufacturing to a facility "with expertise in modeling and manufacturing specialty disposables," a CareFusion spokesperson told MassDevice.com today.
"This will result in 390 positions being eliminated in waves starting in August and ending by Dec. 2015," CareFusion public relations director Troy Kirkpatrick said. "We notified our employees at this facility in April about this plan, and as part of our commitment to treating everyone with dignity and respect, we intend to provide at least 60 days’ notice and severance benefits to impacted employees."
Kirkpatrick maintained that CareFusion remains "deeply committed" to the Vital Signs portfolio, adding that all terminated employees will get at least 4 months of severance pay.
The news comes amid a Wall Street boost in CFN shares, which have notched a couple of new high-water marks this week. CareFusion hit a new 52-week high of $44.44 this morning, after closing at $44.22 last night.
The medical device giant has seen a significant upswing in recent weeks, with sales of its controversial ChloraPrep antiseptic surging following a $41 million settlement over past sales practices, a $1 billion debt offering and a high-risk recall over the company’s Alaris infusion pumps.
CFN shares have risen 5.2% over the last month, 12% over the last 3 months and 21.8% compared with this same time last year.