Home health remedies Endo to cut 560 staffers, shutter drug plants to save cash for...

Endo to cut 560 staffers, shutter drug plants to save cash for spring cellulite launch

14
0
SHARE

After several tough years and a CEO switch earlier in 2020, Endo is overhauling its operations—and cutting hundreds of jobs—to better position itself for a drug launch next spring. 

The company on Thursday unveiled a move to cut 560 positions by the first half of 2026 to save $85 million to $95 million annually. Meanwhile, it will exit manufacturing facilities in California and New York and jettison an active pharmaceutical ingredient site in India.

Endo expects to leave those sites in a “phased approach” through the second half of 2022. It also plans to shift some of its transaction processing duties to third-party companies. 

Free Webinar

Cut time, not corners: Smart processes to include in Phase 1 clinical development program to save time & cost yet add value to your clinical asset

During this webinar, presenters will review specific study components which can be highly beneficial in terms of time and cost savings when included in a Phase 1/ First-in-Man clinical studies. Register now for an insightful overview for anyone new to Phase 1 clinical study operations and useful information for those who have not run an early clinical program in some time.

The revamp is designed to improve “organizational effectiveness” by integrating its commercial and R&D groups. Endo says the moves will “generate significant cost savings” that it’ll invest into the launch of Qwo for cellulite next spring, among other things. 

RELATED: Endo replaces CEO, appoints M&A specialist to board in possible push for deals 

The moves are “consistent with our strategic priority to reinvent how we work and … to expand and enhance our portfolio by enabling reinvestment into building a more differentiated and durable product portfolio,” CEO Blaise Coleman said in a statement. 

Endo expects restructuring charges to total $163 million to $183 million, and it’ll record a pre-tax charge of $67 million this quarter. 

Coleman, previously Endo’s CFO, became the company’s CEO earlier this year after former helmsman Paul Campanelli stepped aside in what he called “a balance of a personal life decision”—and one he made after looking at the company’s financials.

RELATED: Endo to cut loose 375 sales reps, staffers as it sidelines pain meds 

Campanelli had been brought on to right the ship and served for three years after Endo faced a number of challenges ranging from opioid litigation, a failed buyout and the FDA’s decision to remove pain med Opana ER from the market. 

In December 2016, the company cut 375 employees as it sidelined its pain franchise. After inking a partnership in the field in 2012 with BioDelivery Solutions, the company acknowledged the opioid market and its own priorities had changed.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

four × 1 =