With the aim of achieving more financial flexibility, Aralez Pharmaceuticals (NASDAQ:ARLZ) is implementing cost saving initiatives that include a 32% reduction in its U.S. salesforce and a realignment of certain financial resources to support the phased launch of Zontivity (vorapaxar), expected to commence this month, and lower marketing spend on Yosprala (aspirin and omeprazole).The company expects the actions to save ~$7.5M in annual operating expenses. It will book severance-related charges of ~$0.6M this quarter.
CEO Adrian Adams says, "We are committed to proactively addressing the current challenges of our business, while maximizing the potential value of our commercial portfolio, with a growing emphasis on Zontivity. The reduction in our sales force is a necessary, but difficult measure and we are grateful for the contributions of the employees who will be leaving Aralez. We plan to reallocate a portion of our financial resources to make measured investments into Zontivity, which we believe is an increasingly attractive asset. By decreasing our operating costs and continuing to carefully manage our cash, I am confident that we will better position Aralez for long-term value creation for our shareholders."
Management will provide additional details about these initiatives during its Q1 conference call in early May.