Mylan to cut 100 in Puerto Rico

Tracy Staton — Thu, 12 Jun 2008 10:58:09 -0400

Workers in Caguas, Puerto Rico, braced for the axe as Mylan announced it would eliminate 100 of the 500 positions at that manufacturing plant. The generics maker announced back in March that it would embark on a big restructuring plan to cut costs, eliminating some jobs in the process, but this the first tangible evidence of that plan in motion. In cutting back on the manufacturing side, Mylan joins a host of other drugmakers, some of which have shuttered entire plants as they streamline operations and outsource more operations. In Puerto Rico alone, pharma has sliced some 3,000 jobs.

- read the Associated Press story
- see the Pharmalot post

Biovail to shut plants, mull sell-offs

Thu, 08 May 2008 06:59:58 -0400

New CEOs often clean house. Biovail's Bill Wells looks like he's trying to gut and rebuild it. The company announced it would shutter two plants in Puerto Rico as it shifts focus to specialize in central nervous system meds, "a market where unmet medical needs and growth potential are high," Wells said. Making that shift will cost the company $80 million to $100 million over the next few quarters. And Biovail is considering selling off some non-core assets, expecting proceeds of more than $100 million to help pay for its strategic shift.

To shore up the stock in the meantime, Biovail plans to buy back up to 14 million shares. And the company announced five new director candidates to refill the board, which has lost members over the past few months.

As you know, there's been upheaval at Biovail for some time now as its founder fights the company. At the same time, securities regulators are scrutinizing the Biovail and some of its ex- and current officials. Whatever Wells sets out to do, he has plenty of challenges ahead.

- check out Biovail's press release
- see the story at Report on Business
- read the Forbes article