Endo Says It Will Cut 15% of Workforce, Reduce Forecast
Stock Chart for Endo Health Solutions Inc (ENDP)
Endo Health Solutions Inc. (ENDP), the maker of the painkillers Percocet and Lidoderm, reduced its profit and revenue forecasts for 2013 while saying it will cut 15 percent of its global workforce.
Endo also will explore strategic alternatives for its HealthTronics business, which provides urological services and products, and its branded drug discovery platform, the Chadds Ford, Pennsylvania-based company said today in a statement. The job cuts and other reductions in expenses may save $325 million through the middle of 2014, the company said.
The U.S. Food and Drug Administration decided May 10 that generic copies of Endo’s Opana ER may remain on the market without abuse-deterrent technology. The competition may reduce sales by as much as $120 million and cut profit by 55 cents a share, Endo said then.
“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, Rajiv De Silva, Endo’s chief executive officer, said today in the statement.
Endo reduced its 2013 revenue forecast to $2.65 billion to $2.8 billion from $2.8 billion to $2.95 billion and cut its projected profit excluding some items to $4.10 to $4.40 a share from $4.40 to $4.70.
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