Endo restructures, cuts 90 jobs
Endo International announced that as part of its comprehensive organizational review, it has initiated a restructuring program. These restructuring actions primarily relate to the company's corporate functions and branded pharmaceutical R&D functions in Malvern, PA, and Chestnut Ridge, NY. The restructuring program will better align these parts of our organization in size and scope with the company's recently restructured Generics and U.S Branded Pharmaceutical business units. In addition to realizing greater efficiencies, these actions are expected to provide corresponding cost savings. Endo expects to invest a portion of these cost savings in the company's core product franchises and new product development programs for both the Branded and Generics business segments.
These restructuring actions will reduce Endo's work force by approximately 90 full-time positions and will result in restructuring cash charges of approximately $15 million to $20 million. Endo expects to realize approximately $40 million to $50 million in annual run rate pre-tax cost savings by the fourth quarter of 2017.
"Last year, Endo completed the integration, product portfolio rationalization and restructuring of its Generics business segment. In October, we introduced a unified operating model that streamlined our Global Supply Chain organization to better support both our Branded and Generics businesses. Recently, we announced that our Branded Segment will focus on our Specialty business, which led to the elimination of our U.S. Branded pain field sales force and realignment of that business unit. All of these measures have led to today's announced restructuring actions, which address the last of the organizations to be impacted, primarily inMalvern and Chestnut Ridge," said Paul Campanelli, president and CEO of Endo. "In a competitive and challenging healthcare environment, these difficult but necessary steps are intended to best position Endofor long-term success. These actions will serve to strengthen our Company and permit us to provide additional support for our core franchises and development programs."
"I would like to recognize the efforts and hard work of those who have been impacted by these decisions and thank them for all they have contributed to our Company," added Campanelli.