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Item 2.05
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Costs Associated with Exit or Disposal Activities.
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On July 10, 2019, Amneal Pharmaceuticals, Inc. (the "Company," "we," "us," or "our") announced a plan to restructure the Company's operations that is intended to reduce costs and optimize our organizational and manufacturing infrastructure. The restructuring plan resulted from a company-wide review of our organizational structure, operational budgets, current and future capital projects and existing capability and infrastructure undertaken in response to industry challenges, including increased competition, downward pricing pressure and resulting volume reductions. Pursuant to the restructuring plan, we expect to reduce headcount by approximately 550 by the end of 2020 and close our manufacturing facility located in Hauppauge, NY and our packaging facility located in East Hanover, New Jersey. As a result of the restructuring plan, we estimate that we will incur a pre-tax restructuring charge of approximately $10 to $12 million of cash expenditures related to severance benefits. Other cash and non-cash expenditures associated with the restructuring plan, which include decommissioning and dismantling costs and other third party costs at our impacted facilities, cannot be estimated at this time. We expect the restructuring to be substantially complete by the end of 2020. These estimates are subject to a number of assumptions, and actual results may differ. The Company may also incur additional costs not currently contemplated due to events that may occur as result of or in connection with the restructuring.
Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the future. Words such as “may,” “will,” “could,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “assume,” “continue,” and similar words are intended to identify estimates and forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Such risks and uncertainties include, but are not limited to, our ability to execute the restructuring plan and achieve the results anticipated therefrom. A further list and descriptions of these risks, uncertainties and other factors can be found in the Company’s most recently filed Annual Report on Form 10-K and in the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.amneal.com or on request from the Company. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof.
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Item 7.01
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Regulation FD Disclosure.
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On July 10, 2019, the Company issued a press release announcing the restructuring plan referred to above and revising the Company's earnings forecast for fiscal 2019. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. The information in this report furnished pursuant to Item 7.01, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another
filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references the information furnished pursuant to Item 7.01 of this report.
Item 9.01.
Financial Statements and Exhibits.
(d) Exhibits