Sclavo Diagnostics Looks To Cut Costs

Sclavo Diagnostics, the Italian concern which was the subject of a recent management buy-out, has reported a 12.7% drop in sales to 34.5 billion lire ($19.9 million) for 1994, and is now launching a reorganization program.

The objective of the reorganization is to reduce costs drastically, which will include a reduction in the 34-strong workforce, and then to proceed to recapitalization, which is likely to be achieved through the introduction of a new institutional partner.

Managing director Luigi Pirovano, who bought the company in conjunction with Michele Mantero, is targeting a return to profit by 1998. According to Mr Pirovano, the company has fallen victim to the cuts in state health care spending, which has resulted in a strong market contraction.