Amneal to close it Hayward, California-based facilities and operations25 May 2018
Company to streamline operations and capture cost synergies.
Amneal Pharmaceuticals is to streamline operations following a comprehensive analysis of its current and future product portfolios, plant capacities, overlapping capabilities and cost structure as a result of the recent business combination with Impax Laboratories. As a result, the company will close its Hayward, California-based facilities and operations.
The company will immediately implement plans to phase out the Hayward facilities with an expected completion timeline of approximately 15 months, nearly one-year ahead of schedule. Amneal expects to transfer products manufactured at the Hayward facility to the company's lower-cost facilities in the US and 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, President and CEO 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. Our 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."
Mr Stewart continued: "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."
Amneal expects the facility closures to reduce its workforce by approximately 550 positions. Additional details regarding the financial impact and pre-tax restructuring charges will be provided in a future company filing.
Zenith Technologies sees 400% China growth in latest Asia success
22 May 2019
Company plans to double its operations in the country over the next 3 years and expand its work with local companies as well as continuing to support global multinationals.Read more
Online training for pharmaceutical and nutraceutical professionals
21 May 2019
Modules include a variety of subjects from an ’Introduction to tablet tooling’ and ‘Tooling maintenance’, to ‘Troubleshooting production problems’ and ‘Improving productivity’.Read more
FDA approves TraceLink DSCSA pilot submission for network solutions
20 May 2019
Delivering 2023 traceability by leveraging blockchain and digital recalls across a supply network.Read more
UK and US customers set to benefit from Wasdell Group acquisition
17 May 2019
Increased manufacturing and packaging capacity and service in the UK allows company to better service growing client base in the US who require a fully outsourced supply chain for their products within Europe.Read more
Improving gut health with human milk oligosaccharides
17 May 2019
2’-FL a very promising agent for digestive health across various age groups beyond infancy.Read more
Expert forecasts huge growth in Middle East manufacturing
16 May 2019
UAE consumers and insurance companies are willing to pay for highest quality drug products.Read more
Colorcon's breakthrough for direct compression
15 May 2019
New starch-based excipient plays an important role in enhancing the stability of moisture-sensitive APIs.Read more
Legacy plans for lyophilisation boom
14 May 2019
The increase in biologics is driving the growth in demand for lyophilization in vials.Read more
Lessons learned from early EU FMD adopters
13 May 2019
Data exchange, investment costs, resources and hardware identified as some of the biggest challenges.Read more
Catalent achieves global ISO accreditation
12 May 2019
Company is one of the first CDMOs to receive award.Read more
Are you a supplier
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation