Allergan plans to cut over 1,000 jobs and eliminate an additional 400 open positions, in an attempt to cut costs in the face of new generic competition for dry-eye treatment, Restasis.
Last September, Allergan took elaborate measures to protect Restasis by transferring patents to the St. Regis Mohawk Tribe in an attempt to use tribal immunity to shield the company's patents in administrative proceedings. A month later, a Texas federal judge invalidated Restasis patents, opening the door for rival generics to hit the market as early as next year.
The drugmaker said that the planned job eliminations will focus on products and functions in areas where the company expects to lose exclusivity. Estimated cost savings from the restructuring program are anticipated to be $300 million to $400 million per year.
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