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news.King Pharmaceuticals, a vertically integrated pharmaceutical company, has announced that it will reduce 760 positions or approximately 22% of its workforce as part of its restructuring initiatives arising from the company's recent acquisition of Alpharma.
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Approximately 240 of these reductions are corporate positions associated with synergies from the Alpharma acquisition. Approximately 520 of these reductions are associated with the restructuring announced earlier, of which approximately 380 are field sales positions and approximately 140 are corporate positions. Following the restructuring, the company’s sales force promoting its branded prescription products will total approximately 720.
In connection with its restructuring initiatives, the company estimates that it will incur costs resulting in a special charge of between $50 million and $55 million, all of which it expects to incur in the first half of 2009. These costs are exclusive of any special charges associated with the company’s activities related to the integration of Alpharma.
Recently, the US District Court of New York issued an order invalidating two US patents relating to Skelaxin. The company plans to appeal upon entry of an appropriate judgment and vigorously enforce its intellectual property rights.
Brian Markison, chairman, president and CEO of King, said: Following the recent court decision relating to our Skelaxin patents and the uncertainty that it creates with respect to the continued exclusivity of the product, we thoroughly assessed our cost structure. We concluded the restructuring measures announced today will better position us to support the near-term priorities of our strategic plan.