Endo to Restructure Manufacturing NetworkBy
Endo International, a specialty pharmaceutical and generic-drug company, plans to cease operations and close its manufacturing and distribution facilities in Huntsville, Alabama after completing a review of its manufacturing network.
These restructuring actions are expected to reduce Endo’s workforce by approximately 875 positions (including approximately 35 open positions) and to result in pre-tax restructuring charges of approximately $325 million, including approximately $60 million of cash charges.
The remaining estimated non-cash charges consist primarily of accelerated depreciation of approximately $165 million and intangible asset and property, plant and equipment impairment charges of approximately $90 million. Endo expects to realize approximately $55 million to $65 million in annual net run rate pre-tax cost savings by the fourth quarter of 2018.
The closure of the facilities is expected to take place over the next 12 to 18 months. “The Huntsville location has been impacted by declining volumes of commoditized products and these restructuring actions are intended to better match manufacturing capacity to projected future demand,” said the company in a statement.
Source: Endo International