AMINEXT? IS THE HANDWRITING ON THE WALL AT ABBVIE (10/16/22)

SEPTEMBER 16, 2022 — 99 EMPLOYEE LAYOFFS IN IRVINE, CALIFORNIA

The company has announced that it will be laying off 99 employees at its Allergan manufacturing site located in Irvine, California. The layoffs will commence on November 23, 2022.

NOVEMBER 30, 2020 — WARREN BUFFETT TAKES A STAKE

According to a regulatory filing, Warren Buffett’s company Berkshire Hathaway has disclosed a $1.8 billion position in Abbvie.

JUNE 27, 2019…

Lake Bluff, Illinois-based United States AbbVie, a 2011 spin-off of Abbott Laboratories and a research-based pharmaceutical manufacturer, has announced its agreement to acquire Dublin, Ireland-based pharmaceutical manufacturer Allergan for approximately $63 billion. It is believed that AbbVie is preparing for the loss of patent-protected rheumatoid-arthritis treatment Humira to a generic versions now selling in Europe and which will enter the U.S. in 2023. Humira represents approximately 58.3% of AbbVie’s revenue in 2018.

The handwriting is on the wall. There will be personnel dislocations and reductions in force as duplicative functions are consolidated during a period of integration between the two companies. Even more serious will be the cost cutting necessary to compensate for the loss of billion-dollar profits caused by competitive biosimilar generic drugs.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

NO LOVE AT ALLERGAN

Allergan, a pioneer in optical pharmaceuticals is undertaking a cost-cutting and restructuring program to achieve Wall Street earnings expectations in 2018. The plan anticipates the layoff of up to 1,400 employees including 400 open positions that will not be funded or filled. 

The reduced headcount should come as no surprise to most employees as the company widely discussed the possibility of losing the “exclusivity” of their dry-eye treatment, Restasis (Cyclosporine Ophthalmic Emulsion), which is Allergan’s second-largest product.

Anticipating the possibility of an early patent loss, Allergan attempted to circumvent a patent review process by the federal court by transferring (sale-leaseback)  its intellectual property rights to the sovereign Native American Tribe (Saint Regis Mohawk Tribe).  

The scheme did not work and United States Circuit Judge William C. Bryson of the Eastern District of Texas invalidated four key patents for Restasis, thus opening the door for lower-cost generics in the future. Allergan plans to appeal and the FDA has not approved any generic replacements at this time. 

Are you asking yourself, Am I Next?