Vivus to restructure, cut 60 jobs
Vivus, a biopharmaceutical company commercializing and developing therapies to address unmet needs in obesity, sleep apnea and sexual health, has announced a restructuring plan.
“The U.S. market for branded anti-obesity pharmacotherapeutics has developed at a substantially lower rate than expected, held in check by a number of factors,” said Chief Executive Officer Seth H.Z. Fischer. “As stated previously, we have watched this trend closely while controlling our costs throughout the first half of 2015, and we have undertaken a further review of all aspects of the company’s operations.
“In order to reallocate resources most efficiently in support of Qsymia and other projects, Vivus is announcing, effective immediately, a corporate restructuring that will reduce headcount and expenses with an objective of achieving neutral or positive operating cash flows by year-end 2016. We will be reducing our Qsymia sales force to 50 territories and streamlining further our headquarters staff.”
About 60 jobs, including sales force personnel, will be eliminated. The company will incur additional charges for severance and facility closure of about $3.6 million in the third quarter of 2015. The company expects annual savings of approximately $14.4 million in operating expenses beginning in fiscal year 2016.