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WOODCLIFF LAKE, N.J. — Par Pharmaceutical Cos. has restructured its branded drug division, Strativa Pharmaceuticals, as part of a strategic assessment.
Par said Wednesday that the restructuring resulted in a workforce reduction of about 100 employees and that it believes the initiative "will position Strativa to achieve profitability in the near term."
The company expects to incur one-time noncash charges in the second quarter in addition to severance costs. The actions stand to generate operating expense savings in the range of $8 million to $12 million for the rest of 2011, according to the drug maker.
"To achieve our goal of optimizing Strativa’s potential, we found it necessary to reduce the number of sales representatives and focus on Megace ES and Nascobal at this time," Patrick LePore, chairman, chief executive officer and president of Par Pharmaceutical said in a statement. "We remain fully committed to the branded business and believe it is a valuable platform for future growth."
