Valeant Pharmaceuticals, which completed its merger with Biovail last year, has taken steps to lay off nearly half of the employees slated to lose their jobs in the merger.
Providing an update about the status of pharmaceutical jobs, Valeant shared that 500 employees have been notified of terminations and 400 employees are to leave by the end of the Q1, 2011. Also, the majority of facility closures are expected to be completed by the end of this month.
Last year, it emerged that the combined company is going to be called Valeant Pharmaceuticals International, Inc. As per the guidance for 2011, total revenues are expected to be between $2.1-$2.3 billion.
There are plans to complete Biovail integration by mid-year.
In November last year, the company stated: “As committed, by October 15, 2010 all our employees had been notified as to their status with the ongoing Company. Approximately 500 jobs were eliminated and the majority of those terminated will be leaving by December 31, 2010. We are in the process of vacating several facilities, including Aliso Viejo, CA, Bridgewater, NJ, Carolina, PR, Chantilly, VA, Fort Worth, TX, Lawrenceville, NJ, and Redwood City, CA.”
The company recorded $28 million of merger-related transaction costs in the third quarter.
Restructuring charges of $95.9 million were recorded in the quarter, virtually all of which arose from the merger and were primarily employee termination costs. The company estimated that it will incur costs of between $135 million and $180 million (of which the non-cash component, including share-based compensation, is expected to be approximately $55 million) in connection with the integration and cost-rationalisation activities associated with the merger.