Par Pharma Sheds 190 Jobs Amid Reorganization
1 CommentBy Ed Silverman // October 14th, 2008 // 8:27 am
The little company that never could is eliminating 26 percent of its workforce in hopes of rejiggering its generic business. Jobs will be lost in manufacturing, research and development, and various other departments. The move is expected to save $45 million to $55 million a year.
At the same time, Gerard Martino, an executive vp and chief operating officer who helped the drugmaker through a troubling period of restating financial statements, is departing.
“After careful examination of Par’s businesses, we concluded that to improve profitability, we needed to align the company’s cost structure with the size of its operations and development pipeline,” Pat LePor, Par’s ceo, says in an understatement.
Malcolm Ross
Yet another indication that the US market for generics is bad business if you are a local US player. Even the Indian companies are feeling the pinch in the US and are looking for new areas in the CEE.
The egocentric companies focused in the US are in trouble because when it is all about price eventually there will be little profit for anyone. Good for the consumer? Yes in the short term but as more M&A’s result there will be only a very few players in this market and then guess what will happen to the prices.