Endo takes axe to Par manufacting network: 740 jobs affected
Last year, Endo acquired Par Pharmaceuticals for $8bn (€7bn), creating what it said would become “a generics business that is one of the industry’s fastest growing” through the integration of a portfolio boasting over 100 products, a pipeline of over 200, and 1,900 staff across a number of manufacturing and R&D sites.
But a year on and management has announced during its Q1 financial report that it will be speeding up its ongoing generics restructuring strategy through the closure of a facility in Charlotte, North Carolina, and a workforce reduction at its facility in Huntsville, Alabama, both former Par sites.
“This restructuring is an acceleration of our ongoing integration and broader optimization efforts designed to prioritize and grow high-value, durable assets. It is entirely consistent with all our integration activities to date,” said CEO Paul Campanelli.
“The restructuring will affect our manufacturing sites in Charlotte and in Huntsville, and will result in more than 60 product discontinuations,” he continued, adding the cuts would be completed by the third quarter next year and will result in around $60m of savings by Q4 2017.
“As a result, shortly we will begin the process of informing employees about these changes. As part of that effort, approximately 740 employees will be impacted under a phased transition.”
He told stakeholders the need to reduce numbers is “an extremely and disappointing,” but necessary, decision and resources will be made available to help manage staff through this transition period.
“We're making some very, very difficult decisions impacting some very talented people in our Charlotte and in our Huntsville facility. That's been very difficult for all of us. That's the starting point to focus on the restructuring plan.”
For the first quarter 2016, net revenues came in at $964m, up 35% on the same period last year. However, the firm reported a loss from continuing operations of close to $89m.