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 2023 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.
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.
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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.
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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.