Actelion announces cost saving initiative to be implemented by the end of 2012

13-07-2012: Actelion announced that the company has launched a cost saving initiative as an integral part of its strategy for value creation outlined in early May 2012. The initiative will ensure that the company can fully capitalize on the significant growth opportunities in its core area of expertise of pulmonary arterial hypertension (PAH).

The cost saving initiative addresses several challenges facing the company, including the continued strength of the Swiss Franc, increased competition in the United States, and the difficult pricing and reimbursement environment in Europe.

In parallel, the company is also refocusing its Research and Development (R&D) activities towards orphan and specialty indications so as to generate - in the mid-term - additional specialty franchises.

These steps ensure the availability of sufficient investment capacity to maximize the opportunities the company has created in the field of pulmonary arterial hypertension.

The refocusing of Actelion's R&D efforts is expected to result in lower and more targeted R&D spending. Following a portfolio review, those projects which are not in alignment with this strategy will be either stopped, or prepared for partnership or out-licensing.

Cost savings will start to take effect in the latter part of 2012 and accelerate in 2013. The refocusing of the pipeline will require a realignment of the organization.

The cost saving initiative is expected to result in a reduction of up to 135 positions in Research & Development and in administration. Approximately 115 positions could be impacted in Allschwil, Switzerland where these functions are predominantly located. Actelion's key global functions are - and will continue to be - headquartered in Switzerland.

Actelion is committed to minimizing the number of potential redundancies through natural attrition, early retirements and other such measures. The company has initiated a consultation process with employee representatives in Allschwil.

Upon completion of the consultation process, Actelion intends to implement a social plan and conclude the initiative before the end of 2012. Consequently a one-off restructuring charge - the size of which is still to be determined, in part, upon conclusion of employee consultations - will be included in the 2012 financial statements.