Endo Restructures Corporate and Brand Pharma R&D Functions
Endo International has initiated a restructuring program that primarily impacts the company’s corporate functions and branded pharmaceutical research and development (R&D) functions in Malvern, Pennsylvania and Chestnut Ridge, New York as part of an overall organizational review.
This restructuring will reduce Endo’s workforce 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.
The restructuring program will align the corporate and branded pharmaceutical R&D functions with its recently restructured generics and US branded pharmaceutical business units. Endo announced the restructuring of its generics manufacturing operations in May 2016 and of its US branded pharmaceuticals business in December 2016. The restructure of its generic manufacturing operations 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. As part of its US branded pharmaceuticals business restructure, Endo is eliminating its 375-member US branded pain-sales field force, resulting from the return of the pain-treatment product, Belbuca (buprenorphine) buccal film to its partner, BioDelivery Sciences International (BDSI), a Raleigh, North Carolina-based specialty pharmaceutical company.
Endo expects to invest a portion of the cost savings from the latest restructuring program of its corporation and US branded pharmaceutical R&D functions into its core product franchises and new product development programs for the branded and generics business segments.
As part of the company’s overall restructuring efforts, Endo appointed Blaise Coleman to executive vice president and chief financial officer (CFO), effective December 19, 2016. Mr. Coleman served as Endo’s interim CFO from November 22, 2016. Other executive management moves included the appointments of Patrick Barry as senior vice president, US branded pharmaceuticals, and Matthew Davis, MD, RPh, as senior vice president, R&D branded pharmaceuticals.
Source: Endo International