Job Cuts Coming to Forest Labs

The company will spend $240 on a schizophrenia drug

   

Job Cuts Coming to Forest Labs

Forest Laboratories (FRX) is getting rid of 500 jobs — or about 9% of its employees — to cut costs and buy the rights to distribute a drug.

The company is expected to save $500 million by 2016 and it will buy back at least $400 million in company stock according to ABC News. The move to eliminate jobs will help Forest save about $270 million in its research and development operations as well as $150 million from marketing expenses. The rest of the money will come from general and administrative costs.

Forest is also planning on paying $240 million for the U.S. marketing rights to Saphris, a Merck schizophrenia and bipolar mania treatment drug. The deal will be complete by early 2014 and the company expects the drug to make an immediate impact on its profit.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/job-cuts-coming-forest-labs/.

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