Endo shifts focus from pain to specialty in U.S. branded business, eliminates pain sales force
DUBLIN — Endo is shifting the focus of its U.S. branded portfolio of drugs, starting with the return of rights to Belbuca (buprenorphine ) buccal film to BioDelivery Sciences International, which was announced Thursday. The company also announced that its pain portfolio no longer requires field sales promotion and is eliminating its 375-member U.S. branded pain sales field force.
Endo was not the only company to announce cuts to its workforce Thursday, with AstraZeneca announcing the planned elimination of some 700 jobs in the U.S., including 120 at its Wilmington, Dela. headquarters.
Endo said that the financial terms of returning Belbuca have not been disclosed and “are not material,” nor does it have any future royalty or milestone payments to BDSI. With the return and elimination of the pain sales force, the company said it’s refocusing efforts and resources on its core branded assets — among them Xiaflex, which has some approved indications and is in development to treat cellulite — and it will manage such pain products as Opana ER and Percocet as mature brands.
"Since we entered into our licensing and development agreement with BDSI in 2012, the opioid market and Endo's strategic priorities have evolved. While we continue to believe Belbuca a differentiated asset, the product no longer aligns with Endo's U.S. branded segment strategy and our focus on core assets, including Xiaflex moving forward,” Endo president and CEO Paul Campanelli said. “We are extremely grateful for the efforts of our Pain salesforce and all who have supported the Pain business unit and want to acknowledge their dedication, commitment and hard work on behalf of the Company. Additionally, we look forward to working with BDSI on a smooth transition and we wish them future success.”
Endo said that it expects to realize cost savings and drive efficiency with the new alignment of its branded strategy, and the moves it is taking are expected to result in $62 million in restructuring charges, including a $40 million noncash intangible asset impairment charge, and are expected to provide approximately $90 million to $100 million in annual run-rate pre-tax gross cost savings in 2017. Endo said a substantial amount of these savings will be used in 2017 to support core franchises, including the pursuit of Xiaflex to treat cellulite.
“We are continuing our product-by-product portfolio assessment and the development of our full corporate strategy, which we plan to discuss in greater detail when we provide our fourth quarter and full year 2016 results in February 2017,” Campanelli said.