Allergan Plans to Eliminate More Than 1,000 Jobs as Part of Restructuring Initiative
Allergan on Wednesday unveiled in a regulatory filing that it plans to cut its labor force by more than 1,000 positions as part of a cost-cutting initiative. The drugmaker noted that "commercial reductions will primarily focus on products and categories subject to loss of exclusivity." Allergan further disclosed that it will eliminate approximately 400 currently unfilled positions.
The news comes after a US district court invalidated four patents covering Restasis (cyclosporine) in October last year, with Allergan assuming that a generic version of the dry eye therapy would launch at the beginning of 2018. The company had previously transferred the patents to a Native American tribe as part of a controversial agreement.
In November, Allergan CEO Brent Saunders acknowledged that the company would undertake a cost-cutting and restructuring program. Mr. Saunders had explained that while the program was in the planning states, it would present the company with "potential opportunities to become even more efficient."
Allergan noted that the cost-cutting plan comes "in response to the anticipated loss of exclusivity of several key revenue-generating products in 2018," with an estimated reduction in spending relative to the 2017 fiscal year of $300 million to $400 million. The drugmaker anticipates restructuring costs of approximately $125 million due to the job cuts, most of which will be recorded in the fourth quarter of 2017.
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