Endo Health Solutions to cut 15% of workforce
Will also seek ‘strategic alternatives’ for its HealthTronics business
Endo Health Solutions, a US healthcare company based in Malvern, PA, is to lay off 15% of its workforce so that it can reduce annual operating costs by US$325m.
The company also said it would explore ‘strategic alternatives’ for its HealthTronics business, which provides urological services, products and support systems to various healthcare providers in the US, and its branded pharmaceutical discovery platform, which is made up of several drug discovery candidates in multiple therapeutic areas.
The company said approximately $150m of these savings would be realised in calendar year 2013, with the rest being achieved by June 2014.
‘The changes we are announcing today are designed to bring sharper focus to Endo’s strategic growth priorities while right-sizing the organisation,’ said Rajiv De Silva, Chief Executive of Endo. ‘We believe these actions will leave Endo with the right cost structure, leadership and execution capabilities to drive sustainable cash flow and earnings growth over time.’
Since joining Endo in March, De Silva said he had worked closely with the Board and leadership team to gain a better understanding of Endo’s portfolio
‘I am convinced that through more focused execution and discipline Endo can and will deliver on our commitments to customers, employees, and shareholders, while continuing to innovate products that make a difference in the lives of our patients,' he said.
‘While our work is just beginning, we believe the foundation we are putting in place will provide the framework for more consistent, profitable growth within an evolving healthcare landscape.’
Endo said it was ‘committed to improving execution at its core businesses, optimising cash flow, and leveraging its strong market position and a streamlined cost structure to generate organic growth at attractive margins’.
