Alexion Pharmaceuticals, Inc. (ALXN) on Tuesday announced restructuring efforts that will cut the pharmaceutical company's global workforce by 20% as it looks to deliver approximately $270 million in GAAP and approximately $250 million in non-GAAP pre-tax savings annually by 2019.
Shares of the company were falling over 1% in Tuesday morning trading.
"These changes were necessary to enable the Company to deliver sustainable long-term performance to support our ability to continue to develop and deliver life-changing therapies for patients," Alexion CEO Ludwig Hantson said.
The reductions will result in cost savings that will allow the New Haven, CT.-based pharma company to drive growth opportunities, "optimize" its capabilities, and enable it to reach its financial goals of increasing GAAP operating margin to 37% and non-GAAP operating margin to 50% in 2019, the company said.
The resulting financial flexibility will also allow Alexion to reinvest $100 million per year into research and development.
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