Sector News

Endo’s restructuring underway

November 9, 2016
Life sciences

Endo’s move to trim manufacturing operations in the U.S. as part of a companywide restructuring plan has begun amid reports it has found a buyer for its Charlotte, NC, facility which the company had planned to close and let go of up to 300 employees.

The Dublin, Ireland-based company has found a buyer for the facility, which is operated by its Qualitest subsidiary, in-Pharma Technologist reported, citing an unnamed company spokeswoman. Details of the deal weren’t disclosed.

“We’ve actually entered into a formal agreement to sell the facility, signed earlier this week and, as part of the agreement, the new buyer has committed to retain 125 current employees,” the spokeswoman said.

Last week, Endo filed a WARN Act notice with the North Carolina Department of Commerce that said it planned to let go of 282 workers at the plant by the end of the year.

A similar WARN Act notice has yet to be filed in Alabama, where Endo previously said it will eliminate about 350 of the estimated 1,248 employees located at the plant.

The 88,000-square-foot Charlotte manufacturing operation produces tablets and capsules of generic drugs.

The layoffs and closure of the Charlotte plant are part of Endo’s response to revenue losses attributed to tighter competition in the generics market and delays on regulatory action for some of its products, the company said earlier this year.

With the restructuring, Endo hopes to save $60 million in 2017. The moves in the U.S. are mostly focused on Endo’s Qualitest operations, which the company acquired for $1.2 billion in 2010.

Editor’s Note: The story was updated to reflect a report that Endo had found an undisclosed buyer for the Charlotte, NC, plant.

By Joseph Keenan

Source: Fierce Pharma

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