Endo To Cut 560 Positions, Divest Mfg PlantsBy
Endo International, a generics and specialty branded pharmaceuticals company, has announced it is reducing staff by 560 and exiting some manufacturing sites.
To improve its cost structure in its generics business, Endo is exiting manufacturing sites in Irvine, California and Chestnut Ridge, New York, as well as active pharmaceutical ingredient manufacturing and bioequivalence study sites in India. The sites will be exited in a phased approach that is expected to be completed in the second half of 2022. Endo says it is also transferring certain transaction-processing activities to third-party global business process service providers.
The company says these actions are expected to result in annualized savings of approximately $85 million to $95 million and a net reduction to Endo’s global workforce of approximately 560 full-time positions by the first half of 2023. In connection with these changes, the company expects to incur restructuring charges of approximately $100 million to $110 million and total restructuring charges of approximately $163 million to $183 million. Endo will record a charge of $67 million in the third quarter 2020.
For the first nine months of 2020, Endo reported revenues of $2.14 billion, which was on par with the same period in 2019, and net income of $64.6 million compared to a net loss of $204 million for the first nine months of 2019. For the third quarter of 2020, the company reported revenues of $634.9 million, a 13% decline year-over-year, and a net loss of $75.9 million.