Warner Chilcott to restructure Western European operations

Published: 20-Apr-2011

Will mean the loss of 500 jobs in the region


Irish pharmaceutical firm Warner Chilcott is to cut 500 European jobs after a strategic review of its business in the region, where its osteoporosis drug Actonel (risedronate sodium) lost exclusivity late last year.

Actonel accounted for approximately 70% of sales in Western Europe in 2010. The restructuring plan, which should be completed by the middle of next year, affects operations in Belgium, the Netherlands, France, Germany, Italy, Spain, Switzerland and the UK.

Manufacturing facilities in Ireland and Weiterstadt, Germany, and commercial operations in the UK, will remain unaffected.

Warner Chilcott, which makes women's healthcare, gastroenterology, dermatology and urology products, intends to move to a wholesale distribution model in the Western European region to minimise costs. As part of the move, the company plans to focus on launching its postmenopausal osteoporosis treatment Atelvia (risedronate sodium) and Lo Loestrin FE (norethindrone acetate and ethinyl estradiol tablets, ethinyl estradiol tablets and ferrous fumarate tablets) oral contraceptives in the US.

‘We believe this is the appropriate course of action for the company and in the best interest of its shareholders,’ said Hans van Zoonen, president, Europe/International and Global Marketing of Warner Chilcott.

In connection with the restructuring, the company expects to take restructuring charges in 2011 and 2012 of approximately US$120–$130m.

Separately, Warner Chilcott expects to record further charges of approximately US$33m in the quarter ending 31 March, as it repurposes its Manati, Puerto Rico manufacturing facility.

In the future the company will use this facility mainly as a warehouse and distribution centre.

You may also like