Featured Company News – Endo’s Restructuring of its Manufacturing Network Results in Closure of its Huntsville Facility and Job Cuts

LONDON, UK / ACCESSWIRE / July 25, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for pharmaceutical major Endo International PLC (NASDAQ: ENDP) (“Endo”), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=ENDP. The Company announced on July 21, 2017, the completion of a comprehensive review of its manufacturing network. Based on the review, the Company has decided to completely shut down the manufacturing and distribution and to cease operations at its Huntsville, Alabama facility. The process of closing the facility will be done in the next 12-18 months period. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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Commenting on the restructuring of manufacturing network, Paul Campanelli, President and CEO of Endo said:

“Endo’s key priorities include building our product portfolio and technological capabilities for the future. Today’s announced action enables a redeployment of investment from commoditized products to more differentiated capabilities and products that represent our core areas of future growth. I would like to recognize the efforts and hard work of those who have been impacted by this difficult decision and thank them for their valuable contributions to our Company.”

Rationale behind Closure of Huntsville facility and its impact

According to Endo, the decision to close the Huntsville facility was taken in the wake of declining sales volumes of commoditized products manufactured at this location. The closure will be able to realistically match current manufacturing capacity and projected demand in the future.

One of the major impacts of Endo’s decision is the approximately 875 job cuts which includes around 35 open positions. The other impact is the immediate one-time restructuring costs, which is approximately $325 million, including around $60 million in cash payments. The non-cash costs include $165 million in accelerated depreciation and approximately $90 million in terms of intangible asset and property, plant, and equipment impairment charges.

The implementation of the restructuring is expected to result in approximately $55 million to $65 million in annual net run rate pre-tax cost savings from Q4 2018 for the Company.

Aggressive restructuring strategy for growth

The Company’s decision comes within one month after it agreed to pull its opioid pain medication – Opana ER from the market. Endo withdrew Opana ER after US FDA requested the Company to remove the product from the market on account of misuse and abuse of the pain medication.

In July 2017, the Company divested its entire stake in its South African based operations, Litha Healthcare Group to Acino Pharma AG. It also divested its Mexico City based Grupo Farmacéutico SOMAR to Advent International in the same month.

In February 2017, Endo announced a strategic change to unify its operating model, enhance the generics pipeline through investment in hard-to-produce assets and technologies, transform the branded business into a highly focused Specialty business, and divest non-core assets.

In January 2017, Endo had announced that it had undertaken a comprehensive organizational review based on which it had initiated a restructuring program. The restructuring program will cover the Company’s Corporate functions and Branded Pharmaceutical R&D functions in Malvern, PA and Chestnut Ridge, NY. This decision resulted in job cuts for approximately 90 full-time positions.

In October 2016, the Company had streamlined its Global Supply Chain by introducing a unified operating model that supported the Company’s Branded and Generics businesses. In December 2016, Endo returned the rights to BELBUCA™ (buprenorphine) buccal film product to its partner BioDelivery Sciences International, Inc. as a part of its strategic decision to restructure its Branded Pain Portfolio and concentrate on its Specialty Branded Business. The restructuring resulted in the elimination of 375 Pain Sales Field Force which included both full-time employees and contract sales representatives.

Endo expects that its massive restructuring efforts will result in greater efficiencies and also result in annual cost savings and positively contribute in the long-term growth of the Company. The Company plans to use a portion of the cost savings to strengthen its core business and provide additional support to new product development programs.

About Endo International

Endo commenced operations in 1997 by acquiring certain pharmaceutical products, related rights, and assets from The DuPont Merck Pharmaceutical Company. At present, Endo has transformed into a highly focused generics and specialty branded pharmaceutical Company focused on delivering quality medicines to patients in need. Its business is divided into three main business verticals – US Branded Pharmaceuticals, US Generic Pharmaceuticals, and International Pharmaceuticals.

Endo’s global headquarters are in Dublin, Ireland and its US headquarters are at Malvern, Pennsylvania. It has s global team of over 4,900 employees.

Last Close Stock Review

On Monday, July 24, 2017, the stock closed the trading session at $11.67, tumbling 5.74% from its previous closing price of $12.38. A total volume of 6.70 million shares has exchanged hands, which was higher than the 3-month average volume of 6.03 million shares. Endo Intl.’s stock price gained 0.17% in the last one month and 7.06% in the past three months. The stock currently has a market cap of $2.59 billion.

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