) recently announced that approximately 135 employees of the
company could be shown the door following the cost saving
initiative launched by it. The initiative is directed at increasing
efficiencies so that the available resources can be utilized
optimally. Moreover, by undertaking the initiative, Actelion aims
to combat challenges such as the continued strength of the Swiss
Franc, excessive competition in the US and pricing and
reimbursement issues in Europe.
Actelion stated that 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
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 indicated for the treatment of Gaucher's
Actelion further stated that the savings will materialize towards
the end of the year and gain pace next year. All the job cuts
arising from the cost cutting initiative will be in the research
& development (R&D) wing of Actelion. The streamlining is
aimed at cutting down R&D expenditure.
Actelion, which will disclose its earnings results for the first
half of 2012 on July 19, further stated that it intends to direct
its R&D activities for developing orphan and specialty
indications going forward.
We remind investors that Actelion was in the news recently when the
company and its partner
Auxilium Pharmaceuticals, Inc.
) gained approval in Canada for their drug Xiaflex for the
treatment of Dupuytren's contracture in adults with a palpable
Actelion carries a Zacks #3 Rank (Hold) in the short-run.
(ALIOF): ETF Research Reports
AUXILIUM PHARMA (AUXL): Free Stock Analysis
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