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news.Ligand Pharmaceuticals has said that it is reducing its workforce by 76%, or around 267 positions, in a bid to restructure and streamline its business.
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Included in the reduction are 40 home office employees and 23 field-based employees whose employment was terminated at the beginning of January 2007. Additionally, 62 Ligand employees will be offered employment by King Pharmaceuticals under a previous agreement.
Most of the restructuring will take place in the first quarter of 2007, with a small transitional team staying until mid-year.
The company's current CFO, Paul Maier has stepped down and Tod Mertes, a vice president and Ligand's current corporate controller, will assume the position of interim CFO.
The company's primary operations will be consolidated into one building. The company's subsidiary in the UK will be shut down.
Ligand expects to incur cash restructuring charges of approximately $10 to $12 million, primarily associated with one-time employee severance benefits and change in control payments related to the divestiture of its pain relief drug Avinza.
Ligand said that, on an annualized basis, it expects to save around $20 to $22 million.