Endo International Eliminates 90 Jobs in Restructuring

Published: Jan 26, 2017

Endo International Eliminates 90 Jobs in Restructuring January 26, 2017
By Alex Keown, BioSpace.com Breaking News Staff

DUBLIN – Ireland-based Endo International will eliminate 90 positions as the company initiates a restructuring program focused on the company’s corporate functions and branded pharmaceutical R&D functions in Malvern, Penn. and Chestnut Ridge, N.Y.

Endo said the restructuring will better align those parts of its organization with its recently restructured generics and U.S branded pharmaceutical business units. As a result, Endo said the restructuring should generate cost savings between $40 and $50 million per year. Endo said those savings will be invested into the company’s core product franchises, as well as new product development programs in both the branded and generics business segments. Endo’s core drugs include Xiaflex, which is used to treat Dupuytren's contracture in adults, Opana ER and Percocet.

Shares of Endo International were up slightly in pre-market trading, trading at $12.17.

Endo went through several restructuring rounds in 2016, which resulted in layoffs of approximately 1,000 employees. In May 2016, the company slashed its 2016 forecasts due to increased competition and regulatory delays. That caused Endo to undergo a restructuring and evolution of its corporate strategy to meet the new challenges. As part of that restructuring, Endo terminated 740 employees and shuttered a manufacturing site in Charlotte, N.C.

In October, Endo introduced a unified operating model that streamlined its global supply chain organization in an effort to strengthen support for the company’s branded and generics businesses.

In December, Endo terminated 375 members of its sales team after it returned the Belbuca (buprenorphine) buccal film product used for chronic pain to BioDelivery Sciences International, Inc. The return of that drug was part of the company’s plan to focus more on its core products. In addition to divesting itself of Belbuca, Endo divested itself of several divisions that were capital resource drains, including its AMS Men’s Health business and Astora Women’s Health, the maker of vaginal mesh used to treat pelvic organ prolapse in addition to urinary incontinence.

Paul Campanelli, Endo’s chief executive officer, said the multiple restructuring rounds the company has endured over the past year have led up to the latest restructuring, which he said represents the “last of the organizations to be impacted.”

"In a competitive and challenging healthcare environment, these difficult but necessary steps are intended to best position Endo for long-term success. These actions will serve to strengthen our Company and permit us to provide additional support for our core franchises and development programs,” Campanelli said in a statement.

The restructuring and layoffs are expected to result in one-time costs of approximately $15 million to $20 million.

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