Amneal looks to streamline its new operation
Fresh off closing its acquisition of Impax Labs, Bridgewater, N.J.-based Amneal Pharmaceuticals will be making streamlining efforts that will reduce its workforce by roughly 550 jobs. The company is set to close its Hayward, Calif.-based facilities and operations — formerly the site of Impax’s headquarters.
The company said the facilities would be phased out over the course of 15 months, with plans to transfer the products manufactured there to lower-cost U.S. and India facilities. Amneal president and CEO Rob Stewart noted that the move is aimed at creating $1.1 billion of adjusted EBITDA by the end of 2020, with the company expecting “a significant favorable impact beginning in 2019” from the closing.
“I recognize that these types of announcements are difficult for our colleagues. We have announced and are committed to implementing a comprehensive transition plan,” Stewart said. “We will also work toward an orderly wind-down of the Hayward facilities to ensure these actions cause minimal disruptions to customers and patients. I have asked teams across our company for their full support of our colleagues in Hayward as we work together through this difficult transition.”
Amneal said it would provide further information about the financial impact and pre-tax restructuring charges in a future filing.
The company said the facilities would be phased out over the course of 15 months, with plans to transfer the products manufactured there to lower-cost U.S. and India facilities. Amneal president and CEO Rob Stewart noted that the move is aimed at creating $1.1 billion of adjusted EBITDA by the end of 2020, with the company expecting “a significant favorable impact beginning in 2019” from the closing.
“I recognize that these types of announcements are difficult for our colleagues. We have announced and are committed to implementing a comprehensive transition plan,” Stewart said. “We will also work toward an orderly wind-down of the Hayward facilities to ensure these actions cause minimal disruptions to customers and patients. I have asked teams across our company for their full support of our colleagues in Hayward as we work together through this difficult transition.”
Amneal said it would provide further information about the financial impact and pre-tax restructuring charges in a future filing.