Allergan cutting jobs ahead of Restasis competition

Allergan plc (NYSE:AGN) announced details Thursday of a plan to reduce costs as it braces for potential generic competition to its blockbuster dry eye drug Restasis cyclosporine this year. The company will cut over 1,000 current employees and eliminate about 400 open positions. It expects the cuts to save $300-$400 million in 2018 operating expenses compared with 2017.

Allergan said the cuts will come from commercial and other functions, and the commercial reductions primarily impact products subject to loss of exclusivity.

In October, a federal judge invalidated four patents covering Restasis, clearing the way for generic entry (see BioCentury Extra, Oct. 16, 2017).

FDA has not yet approved a generic version of Restasis. During its third quarter earnings call in November, CEO Brent Saunders said Allergan is preparing for generic entry as early as this month.

During the first nine months of 2017, Restasis generated $1.1 billion in revenues, or about 9% of Allergan's total product sales.

Restasis is a cyclosporine ophthalmic emulsion.

Other Allergan products facing loss-of-exclusivity headwinds in 2018 include gastrointestinal drug Delzicol mesalamine, topical acne treatment Aczone and Alzheimer disease drug Namenda XR memantine.