DUBLIN, July 21, 2017 /PRNewswire/ -- Endo
International plc (NASDAQ: ENDP) today announced that after
completing a comprehensive review of its manufacturing network, the
Company will be ceasing operations and closing its manufacturing
and distribution facilities in Huntsville, Alabama. The closure of the
facilities is expected to take place over the next 12 to 18 months.
The Huntsville location has been
impacted by declining volumes of commoditized products and these
restructuring actions are intended to better match manufacturing
capacity to projected future demand.
"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," said Paul Campanelli, President and CEO of Endo.
"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," Mr. Campanelli
added.
These restructuring actions are expected to reduce Endo's
workforce by approximately 875 positions (including approximately
35 open positions) and to result in pre-tax restructuring charges
of approximately $325 million,
including approximately $60 million
of cash charges. The remaining estimated non-cash charges
consist primarily of accelerated depreciation of approximately
$165 million and intangible asset and
property, plant and equipment impairment charges of approximately
$90 million. Endo expects to
realize approximately $55 million to $65
million in annual net run rate pre-tax cost savings by the
fourth quarter of 2018.
About Endo International plc
Endo International plc
(NASDAQ: ENDP) is a highly focused generics and specialty branded
pharmaceutical company delivering quality medicines to patients in
need through excellence in development, manufacturing and
commercialization. Endo has global headquarters in
Dublin, Ireland, and U.S.
headquarters in Malvern, PA.
Learn more at www.endo.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking
statements," including, but not limited to, statements by Mr.
Campanelli and statements regarding the restructuring, including
the expected closing of the Huntsville manufacturing and distribution
facilities and the potential impact of the restructuring, expected
cost savings and anticipated use of such cost savings on the
Company's business and future results. 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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SOURCE Endo International plc