Item 2.05 Costs Associated with Exit or Disposal Activities.
On November 20, 2008, SurModics, Inc. (the "Company") announced in a press release that it had adopted changes to its organizational structure to improve the Company's ability to meet the growing needs of its customers while more effectively managing its operations and cost structure. In connection with the changes, the Company will reduce its workforce by approximately five percent. In addition, the Company is consolidating its office space in Eden Prairie, Minnesota. The workforce reduction is expected to be completed by the end of November 2008, and the move of personnel from a leased facility to corporate headquarters is expected to be completed by the end of December 2008.
The Company expects to record a charge estimated to be in the range of approximately $0.5 million to $0.7 million for severance and other costs related to the workforce reduction. In addition, the Company expects to record a charge estimated to be in the range of approximately $1.0 million to $1.6 million related to the facilities consolidation. The Company expects the total charges related to the changes in its organizational structure to be in the range of approximately $1.5 million to $2.3 million, which is also the total of the expected future cash expenditures. The Company estimates an annual cost savings of approximately $2 million once the reorganization is fully implemented.
A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

99 Press Release Dated November 20, 2008.

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