Amneal Pharmaceuticals announced actions to streamline operations as a result of the recent business combination with Impax Laboratories. As a result, the company will close its Hayward, California-based facilities and operations.
The company will immediately implement plans to phase out the Hayward facilities with an expected completion timeline of approximately 15 months, nearly one-year ahead of schedule. Amneal expects to transfer products manufactured at the Hayward facility to the company's lower-cost facilities in the U.S. and India.
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"We are taking these steps to streamline our operations, accelerate savings and generate resources to drive organic growth as well as pursue external growth opportunities," said Rob Stewart, President and Chief Executive Officer of Amneal. "The acceleration of these initiatives primarily in manufacturing and R&D operations, combined with our large and diverse generic pipeline of potential high-value product opportunities, will help us achieve our commitment to generate approximately $1.1 billion of adjusted EBITDA by the end of 2020. Today's announcement is not expected to materially impact our full year 2018 adjusted EBITDA guidance of $600 million to $650 million and full year adjusted EPS of $0.95 to $1.10 per diluted share. We do expect a significant favorable impact beginning in 2019."
Amneal expects the facility closures to reduce its workforce by approximately 550 positions. Additional details regarding the financial impact and pre-tax restructuring charges will be provided in a future company filing.