The company is also restructuring to reduce its cost base. The restructuring plan is expected to reduce Amneal’s total annual cost base by approximately $50 million.
Amneal said it factored in continuing market pressure and additional competition on its key generic products, the uncertainty of supply of epinephrine auto-injector (generic Adrenaclick) from its third-party supplier during the high seasonal third quarter, as well as delays in key product approvals and launches including generic NuvaRing.
“Recently we initiated an in depth, company-wide review of our organizational structures, operational budgets, current and future capital projects, and existing capability and infrastructure alignments,” said CEO Rob Stewart. “We undertook this review in response to the continuing industry challenges impacting our business, including ongoing pressure on our base generics business from the limited number of buyers and the greater than expected effect of additional competition on our key generic products.
"Additionally, while the value from our complex product pipeline is still expected to be realized, it continues to take longer to materialize than we expected."
Amneal shares were trading down 0.15% at $6.80 in Wednesday’s pre-market session. The stock has a 52-week high of $24.48 and a 52-week low of $6.23.
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