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Endo to close Ala. plant, cut 875 employees

July 24, 2017

Endo International PLC ENDP, -5.74% said Friday it was cutting 875 jobs, which is about 18% of its workforce, as part of a restructuring aimed at cutting costs by up to $65 million a year. The pharmaceutical company said it will close manufacturing and distribution facilities in Huntsville, Ala. over the next 12-to-18 months, as a result of declining volumes of commoditized products. Endo expects to record restructuring charges of $325 million, including cash charges of $60 million. “Today’s announced action enables a redeployment of investment from commoditized products to more differentiated capabilities and products that represent our core areas of future growth,” said Chief Executive Paul Campanelli. The stock, which slipped 0.5% in premarket trade, has tumbled 25.2% year to date through Thursday, while SPDR S&P Pharmaceuticals ETF XPH, -0.02% has climbed 13.2% and the S&P 500SPX, -0.11% has gained 10.5%.

http://on.mktw.net/2gPWOJ1

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