Pharma Stock Roundup: Allergan Announces Job Cuts, Pfizer Inks Deals
Zacks Investment Research | Jan 05, 2018 07:20AM ET
The week has been pretty slow with key announcements including Allergan’s (NYSE:AGN) job cut announcement and Pfizer’s (NYSE:PFE) collaboration agreements with companies like Sangamo and Arvinas.
Recap of the Week’s Most Important Stories
Allergan Announces Job Cuts: At the time of announcing third quarter results in November, Allergan had said that it would have to look at cost reduction in order to deal with the impact of loss of exclusivity (“LOE”) on key products including Restasis. This week, the company announced a cost cutting and restructuring program which will lead to the elimination of more than 1,000 currently filled positions, primarily in commercial and other functions. About 400 open positions will also be eliminated. Restructuring costs of about $125 million, primarily due to severance, will be recorded mostly in the fourth quarter of 2017 with overall operating expense savings expected in the range of $300 to $400 million compared to 2017. The company expects to achieve additional cost reductions through non-headcount spending rationalization (Read more: Roche, MNK Announce Acquisition Agreements, Regulatory Updates from Novartis ).
What's Next in the Pharma World?
Watch out for updates and outlooks that will be provided by several companies next week at the 36th Annual J.P. Morgan Healthcare Conference.
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