King announces accelerated plan; will cut workforce by 20%
BRISTOL, Tenn. King Pharmaceuticals has announced that it will speed up a planned strategic shift to maximize its long-term growth.
The goal includes a plan to decrease its general and administrative expenses, especially after the U.S. Court of Appeals ruled against the continued validity of the patent for the drug Altace.
The company estimates that it can save anywhere from $75 to $95 million, but it also anticipates to incur a one time charge of about $70 million. King announced that among its actions will be a workforce reduction of 20 percent.
Joseph Squicciarino, chief financial officer of King Pharma stated, “We believe the expense reduction measures announced today will enable us to continue generating strong cash flow to invest in our pipeline and business development opportunities, further strengthening our neuroscience and hospital or acute care platforms.”