Endo Announces Strategic Actions to Further Position the Company for Long-Term Success
- Initiatives to Enable Company to Reinvest in Key Areas of Growth -
DUBLIN, Nov. 5, 2020 /PRNewswire/ -- Endo International plc (NASDAQ: ENDP) today announced the initiation of several strategic actions to further optimize the Company's operations and increase overall efficiency. These actions are expected to generate significant cost savings that will be reinvested, among other things, to support the Company's key strategic priority to expand and enhance its product portfolio, including the planned launch of Qwo™, the first FDA approved injectable treatment for cellulite, in the Spring of 2021. These actions include:
- Optimizing the Company's generic retail business cost structure by exiting manufacturing sites in Irvine, CA and Chestnut Ridge, NY, as well as active pharmaceutical ingredient (API) manufacturing and bioequivalence study sites in India. The sites will be exited in a phased approach that is expected to be completed in the second half of 2022.
- Improving operating flexibility and reducing general and administrative costs by transferring certain transaction processing activities to third party global business process service providers.
- Increasing organizational effectiveness by fully integrating Endo's commercial, operations, and research and development functions, respectively, to support the Company's key strategic priorities.
Blaise Coleman, President and CEO of Endo, said, "These actions are consistent with our strategic priority to reinvent how we work and support our associated strategic priority to expand and enhance our portfolio by enabling reinvestment into building a more differentiated and durable product portfolio. We believe these actions will further position Endo for long-term success."
Mr. Coleman continued, "These were difficult but necessary decisions that will, unfortunately, affect many of our dedicated team members. I would like to sincerely thank all of those who will be impacted for their hard work and countless contributions. We are committed to executing a thoughtful transition process and to providing support and assistance to our impacted team members through this period."
The actions announced today are expected to result in annualized pre-tax cash savings of approximately $85 million to $95 million and a net reduction to Endo's global work force of approximately 560 full-time positions by the first half of 2023. In connection with these changes, the Company expects to incur pre-tax cash restructuring charges of approximately $100 million to $110 million and total pre-tax restructuring charges of approximately $163 million to $183 million. Endo will record a pre-tax charge of $67 million in the third quarter 2020.
About Endo International plc
Endo International plc (NASDAQ: ENDP) is a specialty pharmaceutical company committed to helping everyone we serve live their best life through the delivery of quality, life-enhancing therapies. Our decades of proven success come from a global team of passionate employees collaborating to bring the best treatments forward. Together, we boldly transform insights into treatments benefiting those who need them, when they need them. Endo has global headquarters in Dublin, Ireland and U.S. headquarters in Malvern, Pennsylvania. Learn more at www.endo.com or connect with us on LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, but not limited to, statements by Mr. Coleman and statements regarding the restructuring, including the potential impact of the restructuring, including, but not limited to, timing, expected cost savings, anticipated use of such cost savings on the Company's business and future results, as well as product development initiatives. Because forecasts are inherently estimates that cannot be made with precision, the Company's performance may differ materially from its expectations, estimates and targets, and the Company often does not know what the actual results will be until after the end of the applicable reporting period. Therefore, the Company will not report or comment on its progress during a current quarter except through public announcement. Any statement made by others with respect to progress during a current quarter cannot be attributed to the Company. All forward-looking statements in this press release reflect the Company's current analysis of information and represent the Company's judgment only as of the date of this press release. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations. Risks and uncertainties include, among other things, general industry and market conditions; technological advances and patents attained by competitors; challenges inherent in the research and development and regulatory processes, including regulatory decisions, product recalls, withdrawals and other unusual items; challenges related to product marketing, such as the unpredictability of market acceptance for new products and/or the acceptance of new indications for such products; inconsistency of treatment results among patients; potential difficulties in manufacturing; the outcome of litigation, settlement discussions or other adverse proceedings; general economic conditions; and governmental laws and regulations affecting domestic and foreign operations. The Company expressly disclaims any intent or obligation to update these forward-looking statements except as required by law. Additional information concerning these and other risk factors can be found in the Company's periodic reports filed with the U.S. Securities and Exchange Commission and in Canada on the System for Electronic Data Analysis and Retrieval ("SEDAR"), including current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K.
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