plans to cut 230 positions, or 14% of its work force, as it postpones biologics manufacturing and realigns the research and development operations within its biopharmaceutical business.
In Ireland, where Elan's biological manufacturing and related fill finish activities are based, about 115 positions will be eliminated. Roughly 115 positions will be cut in the U.S., mainly in the areas of research, clinical development and biopharmaceutical development, the company said.
Elan said it could invest again in biologics manufacturing and restart its related fill finish activities after it has evaluated Phase III trial date of bapineuzumab in Alzheimer's disease.
In a statement Wednesday, Elan said some of the financial adjustments it is making will be reinvested in advancing the clinical development of its pipeline. The company will reduce operating expenses in 2009 by $30 million to $35 million and by about $50 million in a full year. Severance and related charges are expected to be $15 million and will be recorded as a charge in the first half of 2009.
Elan reiterated its financial guidance for 2009 and said it expects revenue to grow by double-digit percentages. Elan said it will be profitable for the year on the basis of adjusted earnings before interest, taxes, depreciation and amortization, and will end the year with cash and investment balances of about $200 million.