Drug maker Allergan plc (AGN) - Get Allergan plc Report on Tuesday, Jan. 3, gave details of its cost-cutting and restructuring efforts, saying it plans to cut more than 1,000 jobs as it faces competition from generics stemming from the loss of patent exclusivity for several of its products.
In an 8-K filing, the Dublin-based firm said it plans to reduce more than 1,000 filled jobs in commercial and other functions. "Commercial reductions will primarily focus on products and categories subject to loss of exclusivity," Allergan said.
The company is not providing additional details on the impacted positions beyond what is stated in the filing, said spokesman Mark Marmur.
Allergan has about 18,000 employees globally, Marmur said.
The company also said in the filing that it plans to eliminate about 400 open positions.
In October, the U.S. District Court for the Eastern District of Texas in October issued a ruling that invalidates four patents covering Allergan's dry eye medication Restasis. The company has appealed the decision.
Restasis is Allergan's second best-selling drug behind cosmetic treatment Botox. In the nine months ended Sept. 30, 2017, Restasis generated net revenue of $1.06 billion.
In addition, Allergan faces loss of patent exclusivity in 2018 for Estrace vaginal cream, Alzheimer's drug Namenda XR, ulcerative colitis drug Delzicol and acne treatment Aczone.
In its third-quarter earnings release and conference call in November, Allergan said it plans to conduct a cost-cutting and restructuring program to reach 2018 non-GAAP performance net income per share levels outlined on the call.
Allergan chairman, president and CEO Brent Saunders on the Nov. 1 call laid out scenarios including a mid-year launch of generic Restasis. "In that midyear 2018 scenario, our 2018 non-GAAP performance net income per share would be no less than $16, including the impact of our $2 billion share buyback," Saunders said.
If no generic Restasis launches in 2018, "non-GAAP performance net income per share would be expected to be higher than 2017," he said.
Allergan in November said it expected full-year 2017 non-GAAP net income from continuing operations of $16.15 to $16.45 per share.
Shares of Allergan finished Wednesday's trading session at $170.14, down 0.1%. The company has a market capitalization of $56.7 billion.
More of What's Trending on TheStreet: