BYE


Anonymous

Guest
Auxilium Pharmaceuticals, Inc. Announces Corporate Restructuring Designed To Streamline Operations, Cutting 30% Of Jobs
Eddie Staley, Benzinga Staff Writer September 09, 2014 5:00 PM
+ Follow
Print

Email
Free Streaming News
Tickers: AUXL
Share: 0000000

Related AUXL
Midday Gainers From Wednesday, September 3
Markets Mixed; Dollar Tree Profit Misses Estimates

Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL), a specialty biopharmaceutical company, today announced steps it is taking to reduce its costs and more fully support the Company's goal to drive earnings growth and build shareholder value. These steps are being launched after a comprehensive assessment of Auxilium's broadened product portfolio and current cost structure and what management believes to be Auxilium's growth assets, commercial strengths, opportunities and challenges and the Company's manufacturing needs and capabilities. The restructuring is designed to:

Reduce annual operating expenses by at least $75 million and align cost structure with the Company's current product portfolio
Stabilize cash flow and improve leverage ratio
Realign the commercial organization and strategically consolidate the current three sales forces into two sales forces, strengthening the Company's urologist franchise offering while maintaining the momentum for the XIAFLEX® for Peyronie's Disease and STENDRA® launches and supporting the growth potential of TESTOPEL® and edex®
Maintain the targeted commercial resources dedicated to continuing the stable growth momentum of XIAFLEX for Dupuytren's contracture
Focus R&D efforts on the efficient development of near-term value programs – cellulite and Frozen Shoulder Syndrome
Improve manufacturing efficiency and enhance inventory management
"We believe the changes announced today support our corporate growth strategy and enhance and accelerate our ability to achieve our goal of building Auxilium into a leading, diversified North American specialty biopharmaceutical company," said Adrian Adams, Chief Executive Officer and President of Auxilium Pharmaceuticals. "Auxilium has faced significant challenges this year, in particular a dramatic decline in the testosterone replacement therapy market. We are making difficult but necessary changes at the operational level to strengthen our balance sheet, reinforce our competitive position and, we believe, drive shareholder value. We are confident that these steps will make us a leaner, more efficient and more competitive company and, after our anticipated merger with Canadian biotechnology company QLT, Inc., will provide a stronger platform to accelerate our growth and transformation."

Auxilium has identified annual cost savings totaling greater than $75 million, which includes reducing headcount by approximately 30 percent, the majority of which will be immediate, realigning the commercial organization from three into two sales forces, focusing its R&D efforts and expenditures and improving manufacturing efficiency. The Company anticipates substantial completion of the restructuring by the end of 2014, with the full $75 million run-rate achieved by mid-year 2015. In 2014, Auxilium expects to record certain charges totaling up to $20 million associated with the restructuring, primarily resulting from severance and contract-related expenses.

"Finally, we would like to thank all affected and unaffected Auxilium employees for their efforts, dedication and commitment to the Company's growth and success. Each of our departing employees has played an important role in Auxilium's successes and we wish them well in their future endeavors," stated Mr. Adams.
 

Auxilium says it will cut 190 jobs, or 30 percent of workforce, aiming to save $75M a year
Published September 09, 2014Associated Press
NEW YORK – Auxilium Pharmaceuticals said Tuesday it is cutting 30 percent of its workforce, about 190 jobs, as part of a restructuring of its operations that will save it at least $75 million a year.

The moves come as the company struggles with sales of its testosterone replacement gel Testim, which is in a market Auxilium said in August was "increasingly crowded and challenging."

Auxilium said revenue from Testim fell 52 percent in the second quarter. Testim had been the company's biggest-selling product.

Shares of Auxilium Pharmaceuticals Inc. were unchanged at $20.38 in aftermarket trading following the announcement. The stock traded as high as $32.89 in early March.

The Chesterbrook, Pennsylvania, company said it will streamline its commercial organization, creating two sales forces to replace the current three. Auxilium said the moves will strengthen its urology drug franchise, and support key products like its testosterone pellet Testopel, its impotence drugs Stendra and Edex, and Xiaflex. The company also said it will focus its drug research efforts on products that are likely to return value in the near future.

Xiaflex was first approved as a treatment for Dupuytren's contracture, which makes the tendons of the hand thicken and shorten, causing the fingers to curve inward. In December, the Food and Drug Administration approved the drug as a treatment for Peyronie's disease, which causes abnormal curvature of the penis.

Auxilium had 635 employees as of June 30. The company said it expects to take up to $20 million in restructuring charges related to the moves.

Auxilium said in June that it would combine with Canadian eye drug maker QLT in an all-stock deal worth about $345 million. The deal is scheduled to close in the fourth quarter, and is intended to help Auxilium cut its tax rate and diversify its product offerings.

Print
Email
Share

inShare
1
RELATED STOCKS

AUXL
20.38
AUXILIUM PHA...
-0.08
FROM AROUND THE WEB
 
YO AA It is not a challenging market that was the reason for testosterone revenue loss. It was bad leadership. Your leader and her employees caused so much distraction cat fighting on this board. You did nothing but continue to allow your leader to bully present and ex employees. You didn't think all the turnover animosity it created would catch up to her it you. It did. No good deed goes unpunished and bad deeds always PUNISHED. LM has to go. She is toxic.
 


Write your reply...