Allergan will eliminate more than 1,000 positions in anticipation of generic competition surrounding its popular dry-eye drug Restasis, reports Bloomberg.
1. Allergan CEO Brent Saunders hinted at the cost-cutting plan last fall, saying the company was preparing for the potential launch of a generic competitor to Restasis in early 2018.
"I hate to say that we know how to take costs out of the business, but we do," he told Bloomberg in November. "We will be implementing something as soon as we complete our planning. But rest assured, we will do it rapidly."
2. Most job cuts will occur in "parts of the business that are facing new competition," according to Bloomberg.
3. As one of Allergan's best-selling drugs, Restasis produced $1.49 billion in sales in 2016, representing about 10 percent of the company's annual revenue. The FDA has yet to approve a generic version of Restasis.