Switzerland-based
Actelion
(
ALIOF
) recently declared that it has implemented the cost saving
initiative announced by the company in July 2012. In relation to
the cost-cutting move, Actelion further announced that it has
reduced redundancies by 30 positions from the initial projection of
up to 70 redundancies at its head office, thereby minimizing the
job losses.
The company also announced that it has agreed on certain social
measures in Switzerland such as severance payments, early
retirement packages, out-placement support and other additional
benefits after discussing with employee representatives.
The cost-cutting initiative is expected to result in Actelion's
global work-force being trimmed by 135 positions in total, out of
which 115 positions are expected to be redundant in the company's
headquarters. Actelion further stated that the savings will
materialize towards the end of the year and gain pace next year.
The one-time charge resulting from the initiative is expected to be
booked by the company in the third quarter of 2012.
Actelion stated that the cost saving initiative was a part of the
company's strategy for value creation outlined in May 2012. The
cost-cutting initiative should enable the company to focus more
efficiently on its major area of strength - pulmonary arterial
hypertension (PAH).
We note that three (Tracleer, Ventavis and Veletri) of Actelion's
four marketed products are indicated for the treatment of PAH. The
fourth drug, Zavesca, is used for the treatment of Gaucher's
disease.
Actelion backed the 2012 earnings view provided by it while
releasing second quarter results in July 2012. The company
continues to expect 2012 core earnings to grow in mid-single
digits. Actelion also expects 2013 core earnings to be similar to
2012 levels in terms of local currency. 2014 and 2015 earnings at
Actelion are expected to exhibit single-digit and double-digit
growth, respectively.
Actelion, which competes with players such as
Gilead Sciences
(
GILD
) and
United Therapeutics
(
UTHR
) in the PAH space, carries a Zacks #1 Rank (Strong Buy) in the
short run.
(ALIOF): ETF Research Reports
GILEAD SCIENCES (GILD): Free Stock Analysis
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UTD THERAPEUTIC (UTHR): Free Stock Analysis
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