Benzinga | Nov 5, 2020 07:35AM EST

Endo Announces Cost Savings Actions Expected To Result In Annualized Pre-Tax Cash Savings Of Approximately $85M To $95M

- Initiatives to Enable Company to Reinvest in Key Areas of Growth -

DUBLIN, Nov. 5, 2020 /PRNewswire/ -- Endo International plc (NASDAQ:ENDP) today announced the initiation of several strategic actions to further optimize the Company's operations and increase overall efficiency. These actions are expected to generate significant cost savings that will be reinvested, among other things, to support the Company's key strategic priority to expand and enhance its product portfolio, including the planned launch of Qwo(tm), the first FDA approved injectable treatment for cellulite, in the Spring of 2021. These actions include:

* Optimizing the Company's generic retail business cost structure by exiting manufacturing sites in Irvine, CA and Chestnut Ridge, NY, as well as active pharmaceutical ingredient (API) manufacturing and bioequivalence study sites in India. The sites will be exited in a phased approach that is expected to be completed in the second half of 2022.

* Improving operating flexibility and reducing general and administrative costs by transferring certain transaction processing activities to third party global business process service providers.

* Increasing organizational effectiveness by fully integrating Endo's commercial, operations, and research and development functions, respectively, to support the Company's key strategic priorities.

Blaise Coleman, President and CEO of Endo, said, "These actions are consistent with our strategic priority to reinvent how we work and support our associated strategic priority to expand and enhance our portfolio by enabling reinvestment into building a more differentiated and durable product portfolio. We believe these actions will further position Endo for long-term success."

Mr. Coleman continued, "These were difficult but necessary decisions that will, unfortunately, affect many of our dedicated team members. I would like to sincerely thank all of those who will be impacted for their hard work and countless contributions. We are committed to executing a thoughtful transition process and to providing support and assistance to our impacted team members through this period."

The actions announced today are expected to result in annualized pre-tax cash savings of approximately $85 million to $95 million and a net reduction to Endo's global work force of approximately 560 full-time positions by the first half of 2023. In connection with these changes, the Company expects to incur pre-tax cash restructuring charges of approximately $100 million to $110 million and total pre-tax restructuring charges of approximately $163 million to $183 million. Endo will record a pre-tax charge of $67 million in the third quarter 2020.