Endo International Closing Huntsville Facility
A global manufacturer of generic medicines and specialty pharmaceutical products, Endo International plc, has announced that the company will be closing its manufacturing plant in Huntsville, Alabama.
Following the closure of the facility, around 875 jobs will be cut. These include layoffs of approximately 840 current employees and the elimination of 35 unfilled positions. The closure of the plant and associated layoffs are expected to take place over the next 12 to 18 months.
The plant closure is a result of Endo’s ongoing restructuring efforts. The company has decided to close its manufacturing and distribution facility in Huntsville as it shifts its focus toward products where it sees future growth. The company says that its restructuring effort will help it align its manufacturing operations with the projected future demand of its products.
Endo’s Huntsville facility was primarily producing generic drugs. These products have been commoditized over time as competition got stiffer in the pharma industry. As a result, Endo is shifting its focus toward its specialized products in order to differentiate itself from its competitors.
CEO Paul Campanelli says that Endo’s key priorities now include expanding its portfolio of specialty drugs, as well as improving its technological capabilities. “Today’s announced action enables a redeployment of investment from commoditized products to more differentiated capabilities and products that represent our core areas of future growth, ” said Campanelli.
As a result of this restructuring effort, the company expects to achieve $55.0 million to $65.0 million in annual pre-tax cost savings by the fourth quarter of the next fiscal year.
This is not the first time that Endo has laid off a mass number of employees in Huntsville. Last year, Qualitest—which is a generic drug manufacturing company that Endo took under its wing in 2010—announced hundreds of layoffs. Roughly 350 employees were hit with layoffs in Huntsville alone.
Following the closure of the Huntsville facility, Endo will be transferring the manufacturing of its generic products from that facility to other locations.
Endo International has its global headquarters in Dublin, Ireland, and its American headquarters in Malvern, Pennsylvania. The company employs a total global workforce of nearly 4,900 employees.
“Endo to close Huntsville operation, cut 875 jobs,” AL.com, July 21, 2017.
“Overview,” Endo International plc, last accessed July 23, 2017.
“Qualitest laying off hundreds of workers in Huntsville and North Carolina,” AL.com, May 10, 2016.