8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

              Current Report Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934


         Date of Report (Date of earliest event reported) April 11, 2005


                         Calypte Biomedical Corporation
                         ------------------------------
               (Exact name of Company as specified in its charter)


Delaware                            000-20985                  06-1226727
- --------                            ---------                  ----------
(State or Other Jurisdiction)       (Commission             (I.R.S. Employer
of Incorporation)                   File Number)             Identification)


               5000 Hopyard Rd., Suite 480, Pleasanton CA   94588
              -----------------------------------------------------
               (Address of principal executive offices)   (Zip Code)

       Registrant's telephone number, including area code: (925) 730-7200


                                       N/A
          (Former name or former address, if changed since last report)

|_|   Written communication pursuant to Rule 425 under the Securities Act
      (17 CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)

|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 40.13e-4(c))



ITEM 2.05     COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES.

On April 11, 2005, the Board of Directors (the "Board") of the Registrant (the
"Company") approved a restructuring plan under which the Company will
consolidate its operations and discontinue the production of its HIV-1 Urine EIA
and supplemental HIV-1 Western Blot serum and urine diagnostic tests that are
currently manufactured at its facility in Rockville, Maryland. The Company
notified employees affected by the restructuring on April 19, 2005. Although the
EIA and Western Blot products are strong diagnostic tools with an established
market niche, the restructuring plan directs the Company to focus its efforts
and resources on its rapid HIV diagnostic and HIV-1 BED Incidence tests. The
plan directs management to pursue options ranging from selling the Company's
urine EIA and Western Blot business, in which case the acquirer would likely
continue to operate the Rockville facility, to terminating the employees and
discontinuing manufacturing operations at the Rockville facility pending a final
determination of its disposition.

In conjunction with the implementation of its restructuring plan, on April 18,
2005, the Company entered into a non-binding letter of intent to sell its urine
EIA, serum Western Blot and urine Western blot diagnostic test business. The
terms of the proposed transaction are currently being negotiated and the Company
expects to execute a definitive agreement during the second quarter of 2005.

Additionally, the restructuring plan calls for the Company to close its
corporate headquarters in Pleasanton, California and re-staff those functions at
a facility the Company plans to lease in the vicinity of Portland, Oregon, where
most of the Company's research & development staff is presently based. Current
headquarters staff will be retained for the period required to provide an
orderly transition. The Board approved the restructuring plan in an effort to
reduce the Company's cash burn rate and thereby prolong the resources acquired
in its recent Secured 8% Convertible Note financing by consolidating its
operations and focusing its capital resources on the global launch of its rapid
test product line, initially slated for international introduction.

Because of the uncertainty resulting from the range of possible alternatives
with respect to the Company's urine EIA and Western Blot products business,
including its potential sale under formalized terms of the letter of intent, the
Company cannot currently estimate costs, if any, that may be incurred with
respect to the Rockville facility and the related manufacturing equipment and
product inventories. Further, certain alternatives may be subject to approval of
the holders of the Company's recently issued Secured 8% Convertible Notes.
Should a transaction under the letter of intent not be consummated, the Company
might incur costs to decommission the facility; on-going facility lease costs,
until and if sub-lease opportunities are available; costs associated with the
disposition of excess or obsolete inventories and supplies; and on-going lease
or lease termination costs associated with leased equipment. The Company will
provide estimates of restructuring-related costs when such costs can be
reasonably estimated by filing an amendment to this Current Report on Form 8-K.
Whether or not the Company consummates a transaction for its urine EIA and
Western Blot products business, the cost of terminating employees at its
Rockville and Pleasanton locations, including payment of accrued vacation
expense, is expected to be approximately $500,000, essentially all of which will
be paid in 2005. In the absence of sublease opportunities, the Company is also
liable for approximately $190,000 in lease costs from the expected July 2005
closure of its Pleasanton office through the June 2007 expiration of the lease.


Included herein as Exhibit 99.1 is the Company's press release issued April 21,
2005 which announced the restructuring plan.


ITEM 9.01   FINANCIAL STATEMENTS AND EXHIBITS

      (c)   Exhibits

            Exhibit No.                Description
            -----------                -----------
                99.1         Press release dated April 21, 2005.


                               SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Date:  Pleasanton, California
       April 21, 2005

                            Calypte Biomedical Corporation

                        By: /s/  Richard D. Brounstein
                           -----------------------------------------
                            Richard D. Brounstein
                            Executive Vice President and Chief Financial Officer

EX-99.1

[ CALYPTE BIOMEDICAL CORPORATION LETTERHEAD ]          NEWS RELEASE

- --------------------------------------------------------------------------------
5000 Hopyard Rd., Suite 480, Pleasanton, CA 94588
www.calypte.com

Company Contact:                               Investor Relations Contact:

Richard George, President and CEO              Tim Clemensen,

(925) 730-7200                                 Rubenstein Investor Relations

email:rgeorge@calypte.com                      Phone: (212) 843-9337
                                               email:tclemensen@rubensteinir.com


                 Calypte Biomedical Announces Restructuring Plan
              Company to Focus On Incidence and Rapid Test Products


Pleasanton, CA - April 21, 2005 - Calypte Biomedical Corporation (AMEX:HIV)
today announced actions being taken under a restructuring plan approved by the
Board of Directors to focus its efforts on its rapid test and blood-based
incidence test products. As a result of implementing this plan, Calypte expects
to reduce its labor force and overhead costs.

Beginning May 1, 2005, Calypte will significantly reduce its U.S. workforce,
with the majority of positions being eliminated at the Company's Rockville,
Maryland facility. Once fully realized, headcount is expected to decrease by
approximately 66% from 65 employees to 20-25 employees. As a result, the Company
expects its operating expenses to decrease by approximately 50% from the 2004
burn rate of over $1 million per month and $12.8 million per year to less than
$7 million per year.

Under the restructuring plan, Calypte will consolidate its U.S. manufacturing,
administrative, and R&D operations into one site in the Portland, Oregon area,
where the majority of the R&D staff is currently based.

Dr. J. Richard George, President and CEO said, "This has been a very difficult
decision. The employees of Calypte have been an extremely dedicated and gifted
group of people who have worked tirelessly in getting us to where we are today.
Nonetheless, I have an obligation to our stockholders, and the opportunities
that I see emerging globally from the rapid test platform and incidence test
compel me make a tough decision about how and where to allocate our resources."

Dr. George added, "Our EIA and Western Blot product lines are strong diagnostic
tools with reliable customers that focus on a distinct opportunity in the HIV
market, however going forward we see considerable near-term international growth
opportunities in the rapid HIV and BED Incidence testing markets. Our decision
to restructure is in keeping with our objective to distribute our resources
towards our future; the rapid HIV testing platform and BED Incidence test."


"In the course of the coming quarters, Calypte intends to launch products in
Africa, China, and other parts of Asia. We are conducting clinical trials to
initiate the regulatory processes in these territories and plan to supply them
through manufacturing arrangements in place in Thailand and in process in
China."

Dr. George concluded, "I trust that all stockholders will understand that this
plan is intended to extract the highest value from our technology and
intellectual property. We believe our restructuring plan will allow us to more
efficiently and economically focus on productivity and profitability."

Richard Brounstein, Executive Vice President and Chief Financial Officer said,
"This initiative allows Calypte to focus its capital resources on the global
launch of its rapid product line, the products that we believe represent a
compelling opportunity. Calypte's administrative team plans to maintain the
company's internal controls and corporate governance standards throughout the
transition to a new staff in Portland and will ensure a seamless conversion
throughout this process."

In conjunction with the restructuring, Calypte has entered into a non-binding
letter of intent to sell its urine EIA, serum Western Blot and urine Western
Blot HIV in vitro diagnostic business. The terms of the sale are currently being
negotiated and the Company expects to execute a definitive agreement during the
current quarter.

About Calypte Biomedical:
Calypte Biomedical Corporation is a US-headquartered healthcare company focused
on the development and commercialization of diagnostic testing products for the
detection of sexually transmitted diseases. Calypte specializes in novel tests
such as the HIV-1 BED Incidence EIA and is engaged in developing new diagnostic
test products for the rapid detection of HIV and other sexually transmitted
diseases, several of which do not require blood samples. Calypte believes that
there is a significant need for rapid detection of such diseases globally to
control their proliferation, particularly in lesser-developed countries, which
lack the medical infrastructure to support laboratory-based testing. Calypte
believes that testing for HIV and other sexually transmitted infectious diseases
may make important contributions to public health, and could increase the
likelihood of treating those with undetected HIV and other sexually transmitted
diseases.

Statements in this press release that are not historical facts are
forward-looking statements within the meaning of the Securities Act of 1933, as
amended. Those statements include statements regarding the intent, belief or
current expectations of the Company and its management. Such statements reflect
management's current views, are based on certain assumptions and involve risks
and uncertainties. Actual results, events, or performance may differ materially
from the above forward-looking statements due to a number of important factors,
and will be dependent upon a variety of factors, including, but not limited to,
the Company's ability to obtain additional financing, if and as needed, and
access funds from its existing financing arrangements that will allow it to
continue its current and future operations and whether demand for its test
products in domestic and international markets will generate sufficient revenues
to achieve positive cash flow and profitability. The Company undertakes no
obligation to publicly update these forward-looking statements to reflect events
or circumstances that occur after the date hereof or to reflect any change in
the Company's expectations with regard to these forward-looking statements or
the occurrence of unanticipated events. Factors that may impact the Company's
success are more fully disclosed in the Company's most recent public filings
with the U.S. Securities and Exchange Commission ("SEC"), including its annual
report on Form 10-KSB for the year ended December 31, 2004 and its subsequent
filings with the SEC.