Mylan submitted a regulatory filing on Wednesday alerting the Securities and Exchange Commission it would implement a restructuring process to cut costs and streamline operations.
Part of this process will include cutting less than 10 percent of its global workforce. The company employs about 35,000 people, which means an estimated 3,500 jobs could be lost.
The generic drug-maker explained in its filing this decision was made, “after a significant number of acquisitions,” according to Reuters. The document didn’t specify details like how much this effort would cost, but the company promised to disclose more details as the plan becomes finalized.
Mylan came under government scrutiny earlier this year over high price hikes for the EpiPen allergy treatments. Heather Bresch, the CEO of the company, was called before Congress in September to testify about these price increases. The price of a two-pack of these injectors went from $100 in 2008 to over $600 in 2016.
Mylan has attempted to make amends with this controversy.
The firm announced in October it would pay over $465 million to the Justice Department to settle allegations it overbilled Medicaid for the EpiPen. Plus, it promised to launch a generic version of the device next year that will sell for $300.
Still, investors didn’t seem thrilled with the news of the restructuring efforts. Mylan’s stock sank over 5 percent in early morning trading, but slightly recovered in the early afternoon only being down 3 percent.
Filed Under: Drug Discovery
