Global pharmaceutical company, Viatris, has announced additional details of its previously disclosed multi-year global restructuring initiative.
The restructuring initiative is part of the company’s previously announced roadmap to maximize long-term value creation and is intended to ensure the new company is optimally structured to sustainably achieve its bold mission while also delivering on its financial commitments.
Viatris’ initiative is intended to reduce the company’s cost base by at least $1 billion by the end of 2024 or sooner, with a significant portion of the reduction expected to be achieved within the first two years.
The company expects to optimize its commercial capabilities and enabling functions, and close, downsize or divest up to 15 manufacturing facilities globally that are deemed to be no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products.
As a result, Viatris expects that up to 20% of its global workforce of approximately 45,000 may be impacted upon completion of the restructuring initiative. The company will maintain an extensive overall employee base and global manufacturing network that aligns with its go-forward operations.
Viatris also announced that five of its sites that will be initially impacted are:
- Its oral solid dose manufacturing facilities in Morgantown, West Virginia; Baldoyle, Ireland and Caguas, Puerto Rico; and
- Its Unit 11 and Unit 12 active pharmaceutical ingredient (API) manufacturing facilities in India.
- In addition, the divestiture of the company’s injectables manufacturing site in Poland was recently completed.
Commenting on the recent development, Viatris CEO Michael Goettler said, “Viatris has a tremendous opportunity to impact healthcare in a sustainable way through a focus on access and empowering patients worldwide to live healthier at every stage of life. The actions we are announcing today are consistent with our commitment to optimally design our new company to operate efficiently. This initiative is part of Viatris’ roadmap to ensure we can maximize long-term value creation for shareholders and for all stakeholders, including the patients and customers we serve.”
Viatris president Rajiv Malik said, “After more than a decade of building a robust global platform, today we are taking the natural next step as we shape a new company that we believe can meet the needs of patients and customers in this evolving healthcare landscape. As we do so, we are intently focused on ensuring supply continuity within the markets we serve, which includes continuing our ongoing engagement with health authorities and customers to ensure patients’ needs are met.”
Viatris chief financial officer Sanjeev Narula said, “Today’s announcement is a significant next step in ensuring Viatris meets the financial commitments it has made to shareholders and other key stakeholders. The company is currently in the process of defining the remaining parameters of this global restructuring initiative. We expect to continue to provide further details as they are finalized. At our Investor Day on March 1, 2021, we will review our roadmap on how we intend to deliver on our stated commitments, maximize value creation, and generate strong and accelerating free cash flows while positioning Viatris for a sustainable future.”
Formed in November 2020 through the combination of Mylan and Pfizer’s Upjohn business, Viatris has a global workforce of approximately 45,000. Viatris is headquartered in the U.S. with global centers in Pittsburgh, Shanghai and Hyderabad, India.
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