Medicines Co. (MDCO) to Reduce Workforce by 15%

Medicines Co. (NASDAQ: MDCO) disclosed in an SEC filing:

On June 1, 2017, The Medicines Company (the “Company”) commenced implementation of a workforce reduction in connection with the Company’s voluntary discontinuation and market withdrawal of IONSYS in the United States and the cessation of related commercialization activities, effective June 19, 2017, with the New Drug Application for IONSYS remaining open to December 31, 2017. The voluntary discontinuation and withdrawal from the market of IONSYS is not due to any safety or product quality concerns.

The workforce reduction will result in the Company reducing its personnel by approximately 60 employees, representing approximately 15% of the Company’s workforce. The Company expects to record a pre-tax charge of approximately $270 million to $280 million associated with the discontinuation and market withdrawal of IONSYS in the United States market, of which approximately $270 million is expected to relate to non-cash impairment charges (including inventory obsolescence charges) and up to $10 million is expected to relate to cash severance and other employee costs. The Company expects the charges will be recognized in the second quarter of 2017. The Company expects to realize estimated annualized cost savings from the voluntary discontinuation and market withdrawal of IONSYS of approximately $35 million.

You May Also Be Interested In

• Ascentage Pharma names two executives to lead commercial push
• YXT.com regains Nasdaq compliance after ADS ratio change
• East West Ave Acquisition prices $100M IPO on Nasdaq