Actelion Announces Cost Saving Initiative to Be Implemented By the End of 2012
• Objective to ensure sufficient investment to maximize the
opportunities the company has create
• Initiative could result in a reduction of up to 135 positions
ALLSCHWIL/BASEL, SWITZERLAND - 12 July 2012 - Actelion (SIX: ATLN) today announced that the company has launched a cost saving initiative as an integral part of its strategy for value creation outlined in early May 2012. The initiative will ensure that the company can fully capitalize on the significant growth opportunities in its core area of expertise of pulmonary arterial hypertension (PAH).
The cost saving initiative addresses several challenges facing the company, including the continued strength of the Swiss Franc, increased competition in the United States, and the difficult pricing and reimbursement environment in Europe.
In parallel, the company is also refocusing its Research and Development (R&D) activities towards orphan and specialty indications so as to generate - in the mid-term - additional specialty franchises.
These steps ensure the availability of sufficient investment capacity to maximize the opportunities the company has created in the field of pulmonary arterial hypertension.
Jean-Paul Clozel, M.D and Chief Executive Officer of Actelion, commented: "In order to take full advantage of the growth opportunities ahead of us, we must take decisive action now. We will maintain the earning power of our business thereby balancing long-term growth opportunities with short-term profitability enhancement."
The refocusing of Actelion's R&D efforts is expected to result in lower and more targeted R&D spending. Following a portfolio review, those projects which are not in alignment with this strategy will be either stopped, or prepared for partnership or out-licensing.
Cost savings will start to take effect in the latter part of 2012 and accelerate in 2013. The refocusing of the pipeline will require a realignment of the organization.
The cost saving initiative is expected to result in a reduction of up to 135 positions in Research & Development and in administration. Approximately 115 positions could be impacted in Allschwil, Switzerland where these functions are predominantly located. Actelion's key global functions are - and will continue to be - headquartered in Switzerland.
Actelion is committed to minimizing the number of potential redundancies through natural attrition, early retirements and other such measures. The company has initiated a consultation process with employee representatives in Allschwil.
Upon completion of the consultation process, Actelion intends to implement a social plan and conclude the initiative before the end of 2012. Consequently a one-off restructuring charge - the size of which is still to be determined, in part, upon conclusion of employee consultations - will be included in the 2012 financial statements.
In May 2012, Actelion provided guidance for flat core earnings (in local currencies) for 2012 and 2013 before returning to earnings growth in 2014. The company will provide a business update at the half year reporting, scheduled for Thursday, 19 July 2012.
Actelion Ltd is a biopharmaceutical company with its corporate headquarters in Allschwil/Basel, Switzerland. Actelion's first drug Tracleer®, an orally available dual endothelin receptor antagonist, has been approved as a therapy for pulmonary arterial hypertension. Actelion markets Tracleer through its own subsidiaries in key markets worldwide, including the United States (based in South San Francisco), the European Union, Japan, Canada, Australia and Switzerland. Actelion, founded in late 1997, is a leading player in innovative science related to the endothelium - the single layer of cells separating every blood vessel from the blood stream. Actelion's over 2,500 employees focus on the discovery, development and marketing of innovative drugs for significant unmet medical needs. Actelion shares are traded on the SIX Swiss Exchange (ticker symbol: ATLN) as part of the Swiss blue-chip index SMI (Swiss Market Index SMI®).
For further information please contact:
Senior Vice President, Head of Investor Relations & Public Affairs
Actelion Pharmaceuticals Ltd, Gewerbestrasse 16, CH-4123 Allschwil
+41 61 565 62 62
+1 650 624 69 36
The above information contains certain "forward-looking statements", relating to the company's business, which can be identified by the use of forward-looking terminology such as "estimates", "believes", "expects", "may", "are expected to", "will", "will continue", "should", "would be", "seeks", "pending" or "anticipates" or similar expressions, or by discussions of strategy, plans or intentions. Such statements include descriptions of the company's investment and research and development programs and anticipated expenditures in connection therewith, descriptions of new products expected to be introduced by the company and anticipated customer demand for such products and products in the company's existing portfolio. Such statements reflect the current views of the company with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of the company to be materially different from any future results, performances or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected.
Posted: July 2012