Bridgewater-based Amneal Pharmaceuticals Inc. announced it plans to streamline its operations following an analysis after its recent business combination with Impax Laboratories.
As a result, Amneal will close its Hayward, California-based facilities and operations.
The company said it will implement plans for a 15-month phase out of the Hayward facilities. Amneal said it expects to transfer products manufactured there to the company’s lower cost facilities in the U.S. an India.
“We are taking these steps to streamline our operations, accelerate savings and generate resources to drive organic growth as well as pursue external growth opportunities,” said Rob Stewart, CEO and president of Amneal. “The acceleration of these initiatives primarily in manufacturing and R&D operations, combined with our large and diverse generic pipeline of potential high-value product opportunities, will help us achieve our commitment to generate approximately $1.1 billion of adjusted EBITDA by the end of 2020. Today’s announcement is not expected to materially impact our full year 2018 adjusted EBITDA guidance of $600 million to $650 million and full year adjusted EPS of $0.95 to $1.10 per diluted share. We do expect a significant favorable impact beginning in 2019.”
Amneal said the closing will reduce its workforce by approximately 550 jobs.
“I recognize that these types of announcements are difficult for our colleagues. We have announced and are committed to implementing a comprehensive transition plan. We will also work toward an orderly wind-down of the Hayward facilities to ensure these actions cause minimal disruptions to customers and patients. I have asked teams across our company for their full support of our colleagues in Hayward as we work together through this difficult transition,” Stewart said.