Mylan to restructure and slash around 10% of workforce
pharmafile | December 8, 2016 | News story | Business Services, Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | Mylan, epipen, job losses
Mylan has submitted a regulatory filing to the Securities and Exchange Commission to announce that it would be potentially cutting as much as 10% of jobs from its global workforce. Mylan is estimated to employ around 35,000 people around the world and cuts could see 3,500 jobs lost.
The move comes in the wake of a series of acquisitions over this year and the previous year. It purchased the Abbott Laboratories’ non-US developed markets specialty and branded generics business in a $5.3 billion deal in 2015. While this year it has accrued Meda Pharmaceuticals, in a $7.2 billion deal along with a $1 billion to take skin medication from Renaissance Acquisition Holdings.
In Mylan’s filing to the United States Securities and Exchange Commission, they stated: “Since 2015, the Company has made a number of significant acquisitions, and as part of the holistic, global integration of these acquisitions, the Company is focused on how to best optimize and maximize all of its assets across the organization and across all geographies. As part of this process, the Company anticipates that less than 10 percent of its global workforce may be impacted across all geographies and businesses.”
Job losses as the result of takeovers are not to be wholly unexpected, as was revealed in the high profile case of Pfizer’s aborted attempt to takeover AstraZeneca, where it became a major bone of contention. However, the news coming out of Mylan looks particularly bad after suffering from a rough year with the EpiPen scandal. Mylan announced that they had reached a deal, with a $465 million settlement due to the misclassification of the injector as a generic drug. As a result, Mylan’s figures have taken a hit, with a 25% drop in share price since August. It means any further news that emerges, such as restructuring and job losses, could cause investors further jitters.
Ben Hargreaves
Related Content
Pfizer to pay $345 million in EpiPen lawsuit
Pfizer has reached a $345 million settlement over consumer claims they overpaid for EpiPens as …
Mylan reaches agreement with Aspen for their European thrombosis business
Mylan has announced an agreement to acquire the intellectual property and commercialisation rights to Aspen’s …
Mylan secures first FDA approval for generic version of Biogen’s Tecfidera following patent dispute
The FDA has approved its first generic of Biogen’s multiple sclerosis (MS) treatment Tecfidera, awarding …
