Allergan To Slash Jobs In Preparation Of Generic Competition For Top-Selling Drugs
The biggest generic threat to Allergan is to its eye treatment drug Restasis. The company has taken various steps to shield Restasis from competition, notably selling its patents to an Indian tribe in New York state to avoid a U.S. Patent and Trademark Office hearing on the validity of the drug’s patents.
Stat:
Allergan To Eliminate 1,400 Positions As Generic Competition Looms
Making good on a recent promise, Allergan (AGN) disclosed plans to cut 1,000 existing jobs as the company prepares to face generic competition, especially for its second-biggest medicine, the Restasis eye treatment. The job cuts, which also involve eliminating 400 open positions, are expected to reduce expenses between $300 million and $400 million this year, according to a regulatory filing made on Wednesday. Allergan employs about 18,000 people. Other steps, such as closing buildings, may also occur. (Silverman, 1/3)
The Wall Street Journal:
Allergan Plans Job Cuts As Key Drugs To Lose Exclusivity
The company expects the job cuts and other cost-savings measures to reduce operating expenses by between $300 million and $400 million this year. It will record the majority of an estimated $125 million in restructuring costs in the just-ended quarter. (Al-Muslim and Rockoff, 1/3)
In other news —
The Star Tribune:
Bio-Techne Buys Atlanta Biologicals In Cash Deal
Minneapolis-based Bio-Techne Corp., which makes biological supplies and machines used in research by the pharmaceutical industry, has acquired a small firm in Georgia called Atlanta Biologicals that makes a bovine-derived serum that promotes cell growth during biotech experiments. Bio-Techne announced late Tuesday that it has acquired all of the stock of Atlanta Biologicals and its affiliate company Scientific Ventures in a cash transaction. The deal price was not disclosed. (Carlson, 1/3)
