Endo Lays Off 375, Returns Pain Med Rights

Dec 08, 2016

Endo International plc announced it will return the BELBUCA (buprenorphine) buccal film product to BioDelivery Sciences International, Inc. (BDSI). Endo will not have any future royalty or milestone payments to BDSI, and BDSI is not obligated for any future royalty payments to Endo.

With the return of BELBUCA, Endo says it has a portfolio of established pain products that the company believes no longer requires field sales promotion. As a result, the company also announced that it is eliminating its 375-member U.S. Branded pain sales field force, which consisted of both full-time employees and contract sales representatives, as well as internal support to the promoted pain business unit.

Endo expects to realize cost savings, drive greater efficiency and enhance its operational focus with its newly realigned U.S. Branded segment. The strategic actions are expected to result in restructuring charges of about$62 million, including a $40 million noncash intangible asset impairment charge, and are expected to provide approximately $90 million to $100 million in annual run rate pre-tax gross cost savings in 2017.

"Since we entered into our licensing and development agreement with BDSI in 2012, the opioid market and Endo's strategic priorities have evolved. While we continue to believe BELBUCA is a differentiated asset, the product no longer aligns with Endo's U.S. Branded segment strategy and our focus on core assets, including XIAFLEX, moving forward. We believe that this path provides our U.S. Branded business with its best opportunity for success going forward," said Paul Campanelli, president and CEO of Endo.