Mylan (NSDQ:MYL) shares dropped 5% this morning after it said in regulatory filing that it expects to cut less than 10% of its global workforce as a result of its restructuring efforts.
The Canonsburg, Penn.-based company has about 35,000 employees, according to Reuters, and wrote in the SEC filing that it will implement restructuring programs in specific locations in an effort to take cost-cutting measures following a number of acquisitions that it made in the past year. Mylan said it will disclose more details, including how much the efforts will cost, as the company finalizes its plans.
Mylan has been under fire since August, after reports surfaced that it raised the price of its emergency epinephrine injector by 500% since it acquired the device from Merck (NYSE:MRK) nearly a decade ago. The company’s CEO, Heather Bresch, testified at a Congressional hearing and maintained that Mylan has spent a lot of money improving the device. Mylan is developing a generic that will be offered for $300, half the current price of the brand name product.
In October, Mylan said it would pay $465 million to settle claims that it underpaid U.S. government programs, including Medicaid, by classifying the device as a generic product and therefore paying significantly smaller rebates to state Medicaid programs. The government has not confirmed that the 2 groups have reached a settlement.
Drug pricing rose to the forefront of public discussion last year after Turing Pharmaceuticals raised the price of its malaria drug Daraprim from $13.50 to $750 a pill. President-elect Donald Trump weighed in on the issue in a Time magazine article published early this morning. “I’m going to bring down drug prices,” he said. “I don’t like what’s happened with drug prices.”
