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

September 25, 2022

Rise of the machines: Novo Nordisk pledges $200M to create first quantum computer for life sciences

Life sciences

Big Pharma has long seen the potential for AI and machine learning to accelerate drug development. But Novo Nordisk is going a step further by channeling $200 million toward the creation of a computer that will outrun anything in existence.

September 25, 2022

Mount Sinai AI uncovers new brain analysis method to predict dementia, Alzheimer’s disease

Life sciences

Current methods for diagnosing Alzheimer’s disease rely on a complex combination of self- and caregiver-reported symptoms, a physical examination and either a PET scan or a spinal tap to look for evidence of amyloid plaque build-ups in the brain. But a new artificial intelligence-based method may make the diagnostic process a much more objective one.

September 25, 2022

New AstraZeneca-backed report finds big money behind diverse owners and entrepreneurs in Europe

Life sciences

There is lots of talk about diversity and inclusion in business, including in pharma and medtech. A new report by the Open Political Economy Network (OPEN), a think tank focusing on migration and diversity, released its “Minority Businesses Matter: Europe” report highlighting the successes and challenges of ethnic minority-owned businesses in Europe.