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Impairment and restructuring charges | 6 Months Ended
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Jun. 30, 2025
Restructuring and Related Activities [Abstract] |
Impairment and restructuring charges | Impairment and restructuring charges Impairment of long-lived assets The Company tests its long-lived assets that are held and used for recoverability whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. There were no impairment charges recorded on long-lived assets during the three and six months ended June 30, 2025. 2024 Impairment of long-lived assets During the preparation of the Company’s financial statements for the three months ended June 30, 2024, due to the decision to close the Company’s Baltimore-Bayview Drug Substance manufacturing facility and the Rockville, Maryland Drug Product facility, the Company determined there were sufficient indicators of impairment for the Bayview and Rockville asset groups within the Bioservices reporting unit. As a result, the Company performed recoverability tests on those asset groups and concluded that the Bayview and Rockville asset groups were not recoverable as the undiscounted expected cash flows did not exceed their carrying values. The Company allocated and recognized a non-cash impairment charge of $27.2 million during the three months ended June 30, 2024. The table below presents the total impairment charge by asset class for the three months ended June 30, 2024:
| Three Months Ended June 30, 2024
Buildings, building improvements and leasehold improvements | $ | 7.8 |
Furniture and equipment | 14.1 |
Software | 0.2 |
Construction-in-progress | 5.1 |
Total impairment of long-lived assets | $ | 27.2 |
Restructuring Charges January 2023 Organizational Restructuring Plan In January 2023, the Company initiated an organizational restructuring plan (the “January 2023 Plan”) intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth. As part of the January 2023 Plan, the Company reduced its workforce by approximately 125 employees. The charges related to the January 2023 Plan consisted primarily of charges related to employee transition, severance payments and employee benefits. The cumulative amount of restructuring charge related to the January 2023 Plan since inception is $9.3 million. All activities related to the January 2023 Plan were substantially completed during the first quarter of 2023. Restructuring costs are recognized as an operating expense within the Condensed Consolidated Statement of Operations and are classified based on the Company’s classification policy for each category of operating expense. August 2023 Organizational Restructuring Plan In August 2023, the Company initiated the August 2023 Plan, which was intended to strengthen its core business and financial position by reducing investment in and de-emphasizing focus on its CDMO services business for future growth. As part of the August 2023 Plan, the Company reduced its workforce by approximately 400 employees. The charges related to the August 2023 Plan consisted primarily of employee transition, severance payment and employee benefit charges. The cumulative amount of restructuring charge related to the August 2023 Plan since inception is $19.4 million. All activities related to the August 2023 Plan were substantially completed during the third quarter of 2023. Restructuring costs are recognized as an operating expense within the Condensed Consolidated Statement of Operations and are classified based on the Company’s classification policy for each category of operating expense. May 2024 Organizational Restructuring Plan In May 2024, the Company initiated the May 2024 Plan. These strategic actions led to a reduction of the Company’s workforce by approximately 300 employees across all areas of the Company and the elimination of approximately 85 positions that were vacant, as well as the closure of the Company’s Baltimore-Bayview Drug Substance manufacturing facility and Rockville, Maryland Drug Product facility. Decisions regarding the elimination of positions and the closure of manufacturing facilities were subject to local law and consultation requirements in certain countries, as well as the Company’s business needs. The cumulative amount of restructuring charge related to the May 2024 Plan since inception is $18.2 million. All activities related to the May 2024 Plan were substantially completed during the third quarter of 2024. Restructuring costs are recognized as an operating expense within the Condensed Consolidated Statement of Operations and are classified based on the Company's classification policy for each category of operating expense. August 2024 Organizational Restructuring Plan In August 2024, the Company initiated the August 2024 Plan at the Company’s Lansing facility, which reduced the Company’s workforce by approximately 70 employees, as well as eliminated several open positions. The Company also implemented non-labor optimization efforts, such as reducing the Company’s external and vendor spend. The cumulative amount of restructuring charges related to the August 2024 Plan since inception is $2.5 million. All activities related to the August 2024 Plan were substantially completed during the fourth quarter of 2024. Restructuring costs are recognized as an operating expense within the Condensed Consolidated Statement of Operations and are classified based on the Company’s classification policy for each category of operating expense. The following table presents the total restructuring costs related to the January 2023 Plan, August 2023 Plan, May 2024 Plan and August 2024 Plan by reportable segment as well as amounts included within non-reportable segments, unallocated corporate selling, general and administrative (“SG&A”) expense and research and development (“R&D”) expense:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Segment restructuring costs: |  |  |  |  |  |  |
MCM Products | $ | (0.4) |  |  | $ | 2.7 |  |  | $ | (1.2) |  |  | $ | 2.6 |
All other segments | 0.1 |  |  | 0.4 |  |  | — |  |  | 0.2 |
Total restructuring costs included in Cost of product and services sales, net | $ | (0.3) |  |  | $ | 3.1 |  |  | $ | (1.2) |  |  | $ | 2.8 |
Corporate restructuring costs: |  |  |  |  |  |  |
SG&A | $ | (0.3) |  |  | $ | 8.6 |  |  | $ | (0.6) |  |  | $ | 8.5 |
R&D | (0.5) |  |  | 5.4 |  |  | (0.6) |  |  | 5.3 |
Total restructuring costs | $ | (1.1) |  |  | $ | 17.1 |  |  | $ | (2.4) |  |  | $ | 16.6 |
The following table presents the total restructuring costs related to the January 2023 Plan, August 2023 Plan, May 2024 Plan and August 2024 Plan by function:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Employee transition | $ | — |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | 0.2 |
Severance payments | (1.1) |  |  | 14.8 |  |  | (1.3) |  |  | 14.3 |
Employee benefits | — |  |  | 2.1 |  |  | (1.1) |  |  | 2.1 |
Total restructuring costs | $ | (1.1) |  |  | $ | 17.1 |  |  | $ | (2.4) |  |  | $ | 16.6 |
All financial impacts of the January 2023 Plan were reflected in the Company’s consolidated financial statements by the second quarter of 2024. As a result, there was no activity related to the January 2023 Plan for the three and six months ended June 30, 2025. The following table provides the components of and changes in the Company’s restructuring accrual for the January 2023 Plan during the three and six months ended June 30, 2024:
| Employee Transition |  | Severance Payments |  | Employee Benefits |  | Total
Balance at December 31, 2023 | $ | — |  |  | $ | 1.4 |  |  | $ | — |  |  | $ | 1.4 |
Cash payments | — |  |  | (1.3) |  |  | — |  |  | (1.3) |
Balance at March 31, 2024 | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.1 |
Cash payments | — |  |  | (0.1) |  |  | — |  |  | (0.1) |
Balance at June 30, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
All financial impacts of the August 2023 Plan were reflected in the Company’s consolidated financial statements by the fourth quarter of 2024. As a result, there was no activity related to the August 2023 Plan for three and six months ended June 30, 2025. The following table provides the components of and changes in the Company’s restructuring accrual for the August 2023 Plan during the three and six months ended June 30, 2024:
| Employee Transition |  | Severance Payments |  | Employee Benefits |  | Total
Balance at December 31, 2023 | $ | — |  |  | $ | 5.3 |  |  | $ | 0.1 |  |  | $ | 5.4 |
Accruals | — |  |  | (0.5) |  |  | — |  |  | (0.5) |
Cash payments | — |  |  | (3.6) |  |  | — |  |  | (3.6) |
Balance at March 31, 2024 | $ | — |  |  | $ | 1.2 |  |  | $ | 0.1 |  |  | $ | 1.3 |
Accruals | — |  |  | (0.1) |  |  | — |  |  | (0.1) |
Cash payments | — |  |  | (0.5) |  |  | (0.1) |  |  | (0.6) |
Balance at June 30, 2024 | $ | — |  |  | $ | 0.6 |  |  | $ | — |  |  | $ | 0.6 |
The following table provides the components of and changes in the Company’s restructuring accrual for the May 2024 Plan during the three and six months ended June 30, 2025, and the three months ended June 30, 2024:
| Employee Transition |  | Severance Payments |  | Employee Benefits |  | Total
Balance at December 31, 2024 | $ | — |  |  | $ | 4.5 |  |  | $ | 0.8 |  |  | $ | 5.3 |
Accruals | — |  |  | — |  |  | (0.7) |  |  | (0.7) |
Cash payments | — |  |  | (2.7) |  |  | (0.1) |  |  | (2.8) |
Balance at March 31, 2025 | $ | — |  |  | $ | 1.8 |  |  | $ | — |  |  | $ | 1.8 |
Accruals | — |  |  | (0.9) |  |  | — |  |  | (0.9) |
Cash payments | — |  |  | (0.8) |  |  | — |  |  | (0.8) |
Balance at June 30, 2025 | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.1 |
| Employee Transition |  | Severance Payments |  | Employee Benefits |  | Total
Balance at March 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accruals | 0.2 |  |  | 14.8 |  |  | 2.2 |  |  | 17.2 |
Cash payments | (0.2) |  |  | — |  |  | — |  |  | (0.2) |
Balance at June 30, 2024 | $ | — |  |  | $ | 14.8 |  |  | $ | 2.2 |  |  | $ | 17.0 |
The following table provides the components of and changes in the Company’s restructuring accrual for the August 2024 Plan during the three and six months ended June 30, 2025. There was no activity under the August 2024 Plan during the three and six months ended June 30, 2024:
| Employee Transition |  | Severance Payments |  | Employee Benefits |  | Total
Balance at December 31, 2024 | $ | — |  |  | $ | 1.9 |  |  | $ | 0.5 |  |  | $ | 2.4 |
Accruals | — |  |  | (0.2) |  |  | (0.4) |  |  | (0.6) |
Cash payments | — |  |  | (1.1) |  |  | (0.1) |  |  | (1.2) |
Balance at March 31, 2025 | $ | — |  |  | $ | 0.6 |  |  | $ | — |  |  | $ | 0.6 |
Accruals | — |  |  | (0.2) |  |  | — |  |  | (0.2) |
Cash payments | — |  |  | (0.4) |  |  | — |  |  | (0.4) |
Balance at June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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