We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Viatris (VTRS) to Cut Jobs as Part of Restructuring Initiative
Read MoreHide Full Article
Shares of Viatris Inc. (VTRS - Free Report) were down 1.98% after it announced additional details of its previously disclosed multi-year global restructuring initiative.
We remind investors that Viatris was formed in November 2020 through the combination of Mylan and Pfizer's (PFE - Free Report) Upjohn business.
Viatris' restructuring initiative incorporates and expands on the restructuring program announced by Mylan earlier this year as part of its business transformation efforts.
As part of the plan, Viatris expects to optimize its commercial capabilities and close, downsize or divest up to 15 manufacturing facilities globally that it believes are no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products.
Consequently, 20% of its global workforce of approximately 45,000 is likely to be affected upon the completion of the restructuring initiative.
The company also announced that five of the sites that will be negatively impacted are its oral solid dose manufacturing facilities in Morgantown, WV; Baldoyle, Ireland; and Caguas, Puerto Rico; and its Unit 11 and Unit 12 active pharmaceutical ingredient (API) manufacturing facilities in India.
The workforce reduction at these manufacturing sites is expected to occur in phases over the next few years.
The initiative is intended to reduce the company's cost base by at least $1 billion by the end of 2024 or sooner, with a significant portion of the reduction expected to be achieved within the first two years.
As a result, the company expects to incur total pre-tax charges ranging between $500 million and $600 million for the committed restructuring actions related to the five affected sites. These charges are expected to include between $225 million and $275 million of non-cash charges mainly related to accelerated depreciation and asset impairment charges, including inventory write-offs. The remaining estimated cash costs between $275 million and $325 million are expected to be primarily related to severance and employee benefit expenses, as well as other costs, including those related to contract terminations and decommissioning costs. In addition, management believes the potential annual savings related to these committed restructuring activities to be $250-$300 million once fully implemented, with most of these savings expected to improve operating cash flow.
Halozyme’s current-year earnings estimates have been revised 21 cents upward in the past 60 days.
Repligen’s earnings per share estimates have moved up from $1.42 to $1.66 for 2021 in the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Viatris (VTRS) to Cut Jobs as Part of Restructuring Initiative
Shares of Viatris Inc. (VTRS - Free Report) were down 1.98% after it announced additional details of its previously disclosed multi-year global restructuring initiative.
We remind investors that Viatris was formed in November 2020 through the combination of Mylan and Pfizer's (PFE - Free Report) Upjohn business.
Viatris' restructuring initiative incorporates and expands on the restructuring program announced by Mylan earlier this year as part of its business transformation efforts.
As part of the plan, Viatris expects to optimize its commercial capabilities and close, downsize or divest up to 15 manufacturing facilities globally that it believes are no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products.
Consequently, 20% of its global workforce of approximately 45,000 is likely to be affected upon the completion of the restructuring initiative.
The company also announced that five of the sites that will be negatively impacted are its oral solid dose manufacturing facilities in Morgantown, WV; Baldoyle, Ireland; and Caguas, Puerto Rico; and its Unit 11 and Unit 12 active pharmaceutical ingredient (API) manufacturing facilities in India.
The workforce reduction at these manufacturing sites is expected to occur in phases over the next few years.
The initiative is intended to reduce the company's cost base by at least $1 billion by the end of 2024 or sooner, with a significant portion of the reduction expected to be achieved within the first two years.
As a result, the company expects to incur total pre-tax charges ranging between $500 million and $600 million for the committed restructuring actions related to the five affected sites. These charges are expected to include between $225 million and $275 million of non-cash charges mainly related to accelerated depreciation and asset impairment charges, including inventory write-offs. The remaining estimated cash costs between $275 million and $325 million are expected to be primarily related to severance and employee benefit expenses, as well as other costs, including those related to contract terminations and decommissioning costs. In addition, management believes the potential annual savings related to these committed restructuring activities to be $250-$300 million once fully implemented, with most of these savings expected to improve operating cash flow.
Viatris currently carries a Zacks Rank #4 (Sell).
Two better-ranked stocks in the healthcare space are Halozyme Therapeutics, Inc. (HALO - Free Report) and Repligen (RGEN - Free Report) , both carrying a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Halozyme’s current-year earnings estimates have been revised 21 cents upward in the past 60 days.
Repligen’s earnings per share estimates have moved up from $1.42 to $1.66 for 2021 in the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>