Impax Laboratories Inc. (IPXL:US), a maker of generic drugs, will fire about 10 percent of its workforce, as the company moves production to a manufacturing plant in Taiwan.
Most of the 110 jobs lost will be at a facility in Hayward, California, the company said in a statement today. Impax had 1,125 employees at the end of 2012, when the Hayward-based company generated $582 million in annual sales.
Use of the more cost-efficient Taiwan plant led to less need for the U.S. facility, Impax said. In addition to manufacturing jobs, two dozen salespeople and managers will be fired because of a delay in regulatory approval for the Parkinson’s disease drug Rytary. The manufacturing job cuts will lead to about $15 million in annual cost savings, and the company may hire more employees if the medicine is approved.
“This reduction in our workforce was a difficult decision, but necessary to position Impax for a brighter future,” Chief Executive Officer Larry Hsu said in the statement. “We remain committed to advancing our generic and brand business pipelines and growth strategy.”
The cuts don’t affect Impax’s financial outlook (IPXL:US) for 2013, the company said.
Impax rose 1 percent to $18.95 at 9:45 a.m. New York time. The stock had fallen 8 percent (IPXL:US) in the 12 months through yesterday.
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