NEW YORK (AP) -- Shares of Inverness Medical Innovations Inc. fell after the company said it will close three plants that employ 395 people as part of a cost-cutting measure.
The stock fell $2.14, or 7.4 percent, to close at $26.72. Shares have traded between $26.29 and $65 over the last 52 weeks.
Two of the plants shutting down, based in San Francisco, house the company's Cholestech blood cholesterol monitor operations.
Piper Jaffray analyst Mark Richter reaffirmed a ''Buy'' rating, saying the move will help save money and possibly lead to expansion.
''We would highlight that this announcement along with the recent announcement by Inverness to pursue the closing of its Unipath manufacturing facility in Bedford, UK should be viewed as positive steps in Inverness' goal to consolidate manufacturing and reduce operating expenses,'' he said in a note to investors.
