Heading into Allergan’s third-quarter conference call, executives knew investors were skittish about the prospect of Restasis generics. So they spelled out their solution loud and clear: Cost cuts are coming, and “rapidly.”
Executives are currently sifting through the details of cost-squeezing proposals they drew up earlier this year, CEO Brent Saunders said on the call. And considering Allergan’s experience wringing savings out of its many M&A deals, investors shouldn’t worry. When it was Actavis, the company slashed 577 jobs at its Irvine, CA headquarters alone as part of the $1.8 billion in savings it plotted when it took over Allergan.
“This team is up for it,” Saunders said. “I hate to say we know how to take costs out of the business, but we do, and we know how to do that in a way that protects the long-term growth drivers.”
Executives are currently sifting through the details of cost-squeezing proposals they drew up earlier this year, CEO Brent Saunders said on the call. And considering Allergan’s experience wringing savings out of its many M&A deals, investors shouldn’t worry. When it was Actavis, the company slashed 577 jobs at its Irvine, CA headquarters alone as part of the $1.8 billion in savings it plotted when it took over Allergan.
“This team is up for it,” Saunders said. “I hate to say we know how to take costs out of the business, but we do, and we know how to do that in a way that protects the long-term growth drivers.”