Endo International ($ENDP) announced restructuring it business as it plans to cut down 90 full time jobs, in order to cut costs of operations. The step is likely to result in saving of $40 million to $50 million a year. The company is believed to have 6,400 employees on its roll.
The company will book a cash charge of $15 million to $20 million as a result of the restructuring. The company CEO Paul Campanelli said, “In a competitive and challenging healthcare environment, these difficult but necessary steps are intended to best position Endo for long-term success.”
Endo International also reached settlement with the US antitrust regulators. Pursuant to the settlement, the company has agreed to not paying its competitors to delay the introduction of generic counterparts to its medications. The company was alleged to have paid Watson Laboratories Inc and Impax Laboratories Inc for delaying their generic medicines to the market.
Endo was not required to make any admission of liability or to make any monetary payment to the FTC.
Embroiled in such controversies, the company stock lost over 27 percent of its value. However, it showed upswing in the previous trading session. The new step for curtailing costs is also expected to boost the company performance and its stock price.