Sector News

Allergan plots 117 job cuts in the wake of Kythera buyout

October 14, 2015
Life sciences

The job-cutting ax has been hovering over Kythera Biopharmaceuticals ever since Allergan agreed to buy the company in April. Now, that ax is getting ready to fall.

According to a notice filed with the state of California, Kythera will lay off 117 employees at its Westlake Village, CA, headquarters as of Nov. 30. The cuts include top Kythera executives–including CFO, CMO and chief commercial officer–and lower-level employees across the company, from HR and operations to R&D and manufacturing. Allergan closed on its purchase of the company on Oct. 1.

The layoffs amount to more than half of Kythera’s work force as of June 30, the Los Angeles Business Journal reports. In a second-quarter filing with the Securities and Exchange Commission, the company said it had 218 employees.

Merger-related layoffs aren’t uncommon, and soon after the deal was announced, Allergan said it would be cutting jobs at Kythera as it integrated the company into its own operations. CEO Brent Saunders said at the time that Allergan would keep “the vast majority” of the deal target’s employees.

Though some high-level sales and marketing managers will lose their jobs, including the chief commercial officer and the VP for U.S. sales, Allergan has said it would keep much of the sales force intact. Kythera is in the midst of a product rollout–the double-chin injection Kybella–and Allergan has high hopes for that launch.

Kybella could not only be a major product in itself, but could also add oomph to the rest of Allergan’s aesthetic product line, partly via cross-selling, and partly as an entry-level product for men. “Keep in mind, we don’t plan on eliminating any sales reps,” Saunders said when the deal was announced, adding that Allergan planned to “integrate the Kythera reps after closing into our sales force.”

The Westlake job cuts follow more than 1,000 for Allergan in California over the past year, first as the company fought off a buyout by Valeant Pharmaceuticals ($VRX), and then after its merger with Actavis.

By Tracy Staton

Source: Fierce Pharma

comments closed

Related News

May 21, 2022

As monkeypox cases emerge in US and Europe, Bavarian Nordic inks vaccine order

Life sciences

A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.

May 21, 2022

Moderna chairman Afeyan defends hiring practices after CFO debacle: report

Life sciences

Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.

May 21, 2022

Merck to pay up to $1.4B in cancer deal with Kelun, but details are scarce

Life sciences

Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”