Endo Announces Restructuring in Generics OperationsBy
The specialty pharmaceutical company, Endo International, has announced a restructuring in its generics manufacturing operations. As part of its first-quarter earnings release, the company announced an accelerated restructuring of its generics product and R&D portfolio, as well as its manufacturing facility network. This restructuring is expected to result in approximately $60 million in net run rate cost savings in 2017 and is expected to result in the closure of the company’s facility in Charlotte, North Carolina, and a workforce reduction at its facility in Huntsville, Alabama.
Endo reported first quarter 2016 revenues of $964 million, including new product revenues from its 2015 acquisitions of Auxilium and Par Pharmaceutical, a 35% increase compared to first quarter 2015 revenues of $714 million. However, the company reported a first-quarter loss from continuing operations of $89 million compared to first quarter 2015 reported income from continuing operations of $150 million.
During first quarter 2016, the US Generic Pharmaceuticals business unit, which is the company’s largest contributor to overall revenues, continued the integration of Par Pharmaceutical Holdings, Inc., which was acquired by Endo in September 2015, while executing on its sales and marketing, R&D and manufacturing plans for the year. The company reported first-quarter 2016 revenues of $583 million, a 63% increase compared to first quarter 2015; this increase was primarily attributable to growth from the addition of sales from the company’s acquisition of Par, as well as underlying growth of certain products. Within its generics business, company reiterated its intention to launch approximately 30 products from its newly combined pipeline in 2016 and to file approximately 25 to 30 abbreviated new drug applications with the US Food and Drug Administration.
In other segments, the company reported first-quarter revenues of $309 million from its US branded pharmaceutical business, a 9% increase compared to first quarter 2015; this increase was primarily attributable to the acquisition of Auxilium Pharmaceuticals. It also reported revenues of $71 million for its international pharmaceuticals business.
In other news, Endo reports that Brian Lortie, president, US Branded Pharmaceuticals, has decided to step down from his position upon the appointment of a successor. Mr. Lortie joined Endo in 2009 and led its US Pharmaceuticals business with responsibility for all strategic, commercial and operational functions, including sales and marketing, strategy and portfolio development, commercial operations, managed markets, manufacturing, supply chain and quality. Endo has initiated a search with a leading executive recruitment firm to identify a successor for Mr. Lortie, who has agreed to remain with the Company until his replacement is hired.