October 31, 2014
By Riley McDermid, BioSpace.com Breaking News Staff
Impax Laboratories, Inc. said today that it will launch a new phase of reorganization in its generic research and development departments in order to re-strategize its priorities after axing 49 jobs recently.
The company’s new structure will now have its generic R&D organization oversee early stage product development and analytical functions for all Impax products. Its brand R&D department will switch to focusing on Phase II, III and IV clinical activities, drug safety and pharmacovigilance for all Impax products.
Impax said it expects to take a $2 million charge in the fourth quarter of 2014 as a result of costs associated with the restructuring. But it said the new organizational flow will save it $8 million annually, beginning in 2015, and around $1.5 million in the fourth quarter alone.
“Our brand R&D team will now focus on existing late-stage opportunities, while the generic R&D team will continue to focus on a concentrated portfolio of high value generic products,” said Fred Wilkinson, president and CEO of Impax. “This structure also aligns the entire scientific team on the successful implementation of our quality improvement initiatives. We believe this organizational realignment allows us to take advantage of the internal strengths within R&D to the benefit of both the brand and generic businesses.”
Impax’s generic portfolio has 23 Abbreviated New Drug Applications pending at the U.S. Food and Drug Administration (FDA) and 23 projects under development. Its Parkinson’s drug RYTARY (IPX066) is currently its most popular hope for investors and is awaiting a new drug application review from the U.S. Food and Drug Administration on Jan. 9, 2015.
The company said its realignment of the R&D organization will switch up responsibilities between these teams so it can use more of its core technologies and scientific expertise, increase efficiencies and process improvements in key areas and allow it to double down on product development.
“By leveraging our resources in this manner, we improve our R&D efficiency and effectiveness,” Wilkinson continued. “This change is also designed to ensure we are investing in internal projects and external opportunities that enhance our pipelines, support our growth, and offer the greatest
