Mylan Plans Restructuring and Cuts in Global Workforce

Mylan has announced plans for restructuring programs in certain locations representing initial steps in a series of actions that are anticipated to further streamline its operations globally. The company anticipates that less than 10% of its global workforce may be impacted across all geographies and businesses. As of December 31, 2015, Mylan’s global workforce included nearly 35,000 employees and external contractors, according to the company’s 2015 annual report. 

Mylan made the announcement through a December 5, 2016 notice with the US Securities and Exchange Commission (SEC). In the notice, Mylan said it is currently developing the details of the cost reduction initiatives, including workforce actions and other potential restructuring activities, and that further details will be disclosed as initiatives are finalized, including the estimated amount or range of amounts to be incurred and future cash expenditures associated with those initiatives.

Mylan said that these restructuring plans are in addition to previously announced initiatives and reflects integration of acquisitions that the company has made since 2015. Earlier this year, Mylan acquired the Swedish specialty pharmaceutical company, Meda Aktiebolag for approximately SEK 60.3 billion ($6.6 billion) and also acquired the non-sterile, topicals-focused specialty and generics business of Renaissance Acquisition Holdings, LLC in deal valued up to $1 billion. In May 2016, Mylan had announced its agreement to acquire the Renaissance business for $950 million in cash at closing, plus additional contingent payments of up to $50 million, subject to customary adjustments. That acquisition provided Mylan with a complementary portfolio and pipeline of branded and generic topical products, an established US sales and marketing infrastructure targeting dermatologists, and integrated manufacturing and development platform, including a topicals-focused contract development and manufacturing organization, DPT Laboratories. Renaissance retained its sterile-focused businesses and associated manufacturing facility.

In 2015, Mylan acquired certain women’s healthcare businesses, known as Jai Pharma, which were spun off from Famy Care Limited, and also the completed the acquisition of Abbott Laboratories’ non-U.S. developed markets specialty and branded generics business for approximately $5.3 billion. .

Source: Mylan (US SEC notice) 

Leave a Reply

Your email address will not be published. Required fields are marked *