
Alkermes to axe 160 jobs in cost-cutting restructure
pharmafile | October 24, 2019 | News story | Sales and Marketing |
The Irish biopharma company expects to complete most of the job cuts by end of this year and will take charge of around $15 million in the fourth quarter to cover termination costs.
The company ultimately expects the steps it has been taking to lower cost in the region of $150 million with restructuring attempts saving “several hundred million dollars over the next few years.” Since the start of the year shares in the company have fallen in value by more than a third but the news led to a small but noteworthy 6% increase.
Although the Dublin-based company generates around $1 billion in annualised revenue, expenses have meant that the company is posting net losses.
Employing around 2,300 full time staff as of February 2019, the restructure will ultimately affect 7% of the company’s workforce.
Third quarter earnings report showed a net loss of $53 million, up from $34 million during the same three month period a year ago. Revenues however rose to $255 million, an increase of $6 million.
In spite of losses, the company expects total revenue for the year to reach between $1.1 and $1.2 billion, a forecast which includes an expected $150 milestone payment from Biogen – money which is tied to the final US approval of the company’s multiple sclerosis drug Vumerity (diroximel fumarate) which won a tentative nod for the FDA earlier this month.
CEO Richard Pops stated that the biopharma company is “looking to Vumerity as a new profitable source of royalty revenues”.
The company also expects to file this quarter for FDA approval of another drugs ALKS 3831 for schizophrenia and bipolar disorder.
NIk Kiran






