This excerpt taken from the WST 8-K filed Dec 17, 2007.
Item 2.06. Material Impairments.
(a) On October 18, 2007, Pfizer, Inc. announced its decision to exit the Exubera® inhaled insulin product. Nektar Therapeutics, the products developer and Tech Groups customer, has stopped ordering the Exubera® inhalation device that the Tech Group manufactures. The Company has a $13.1 million intangible asset associated with the Nektar contract, which it feels is substantially impaired. As a result, on December 11, 2007, the Board of Directors of the Company approved the recognition of an impairment charge associated with the Nektar contract.
(b) The Company expects to recognize an impairment charge, related to the intangible asset, in the range of $11 million to $13.1 million in the fourth quarter of 2007. The Companys inhalation device production facility is not directly affected by the restructuring plan addressed above, and the Company continues to expect that the costs of that facility, including any costs related to a curtailment of that operation, are recoverable under its supply agreement.
(c) None of the costs incurred is expected to result in cash expenditures.