Perrigo Company (NYSE:PRGO; TASE:PRGO) announced today that it is cutting its workforce by 800 employees, or 6% of its current global workforce. The company estimates the total cost of implementing the measures will between a quarter to half of the total $175 million annualized run rate benefits.
Perrigo said it is taking actions to deliver shareholder value far superior to the Mylan takeover offer and that its efficiency and reorganization measures would drive substantial profit growth in 2016 and beyond. Perrigo also said it is buying back $2 billion in shares.
Perrigo has two manufacturing plants in Israel following its takeover of Agis Pharmaceuticals more than a decade ago.
Perrigo chairman and CEO Joseph C. Papa said, "The actions we are announcing today are the next step in our strategy to leverage the powerful global platform we have built. The acquisition of Elan in 2013 provided an international gateway for our durable base business model, and the purchase of Omega Pharma earlier this year provided us a pan-European branded consumer healthcare business that is delivering greater benefits than we originally expected. We are taking steps to ensure that we fully capture the benefits of our global platform to drive continued strong profit growth and build substantial shareholder value. With these actions we are making a great company - with an outstanding track record of value creation and compelling prospects for continued growth - even better."
Perrigo said it is taking immediate steps to consolidate its operations, supply chain and procurement management activities into one global center of excellence in Ireland in order to maximize value through the elimination of redundancies and enhancement of purchasing power. Global R&D leadership will join Global Portfolio Management in Ireland to drive a Company-wide product selection and development process. Perrigo expects annualized operational and tax benefits of $105 million from these initiatives.
Perrigo also reported record third quarter $1.34 billion revenue, up 41% from the corresponding quarter and record net profit of $258 million, up 38%, with adjusted diluted earnings per share of $1.76, up 26%.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2015
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