Layoffs at meningitis-linked firm

A Massachusetts company with the same founders as a pharmacy tied to a deadly meningitis outbreak says it's laying off nearly all its employees amid its prolonged closure for inspection. WAMC's Ian Pickus has more..

Ameridose employees were notified of the layoffs Thursday.

A company spokesman says the notice affects 650 employees at Ameridose and 140 employees at its marketing and support arm. He says a small number will be retained amid an ongoing product recall. Ameridose LLC says it hopes the layoffs will be temporary.

The Westborough company paid its employees since it voluntarily closed for inspection Oct. 10 because of problems at the New England Compounding Center pharmacy, a sister company. The meningitis outbreak has been linked to a steroid made by the NECC, in Framingham, near Boston.

Regulators last week asked Ameridose to remain closed until Nov. 19.

Copyright 2012 Associated Press. All Rights Reserved.