Date: 2016-07-20
Type of information: Restructuring
Compound:
Company: Aegerion Pharmaceuticals (USA - MA)
Therapeutic area: Rare diseases - Genetic diseases - Metabolic diseases
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On July 20, 2016, Aegerion Pharmaceuticals announced that it intends to withdraw lomitapide from the European Union (EU) and certain other global markets. In addition, the Company is reducing approximately 13 percent of its global workforce. This represents a reduction from year-end 2015 of approximately 40 percent. As part of its plan to withdraw lomitapide from certain markets outside the U.S., Aegerion intends to evaluate its strategic options, including divestiture or licensing of Aegerion's rights to lomitapide to a partner that can continue to provide access to the therapy for HoFH patients in need. The Company will maintain certain infrastructure in the EU to support the launch of Myalept® (metreleptin for injection) in this region upon anticipated approval in late 2017. This revised lomitapide strategy and reduction in force are part of a broad cost reduction program taken by Aegerion in response to the continuing impact of competitive therapies on Juxtapid® (lomitapide) capsules sales. The goals of the program are to significantly reduce operating expenses, extend the Company's cash position, and facilitate cash generation from operations in 2017. The goal of the reconfiguration is to reduce 2017 operating expenses by between $25 and $35 million relative to the previously stated 2016 operating expense guidance of between $145 and $155 million. Aegerion plans to provide financial guidance upon the closing of the merger with QLT, anticipated to occur late in the third quarter or early in the fourth quarter of 2016. The Company expects to complete the reduction in force during the third quarter of 2016, and to substantially complete the payment of employee separation and other material costs associated with the restructuring by the second quarter of 2017. The Company expects to complete the withdrawal of lomitapide from the EU and certain other global markets by the end of 2016, unless the Company earlier enters into ongoing supply and other arrangements with suitable partners in such markets.
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