Item 2.05 Costs Associated with Exit or Disposal Activities.
On October 6, 2022, BioMarin Pharmaceutical, Inc. (the "Company") announced that
on October 4, 2022, the Company's Board of Directors committed to an
organizational redesign intended to better focus, optimize, and streamline
operations. As a result of the organizational redesign, the Company will reduce
its global workforce by approximately 120 employees. The Company expects
annualized future cost savings from the reduction in force to be approximately
$50 million, which the Company intends to reinvest in its operations, while any
remainder is expected to contribute to the Company's goal of increasing
profitability. The Company estimates that it will incur aggregate pre-tax
charges of approximately $20 - $25 million spread across the third and fourth
quarters of 2022. These charges represent one-time cash expenditures for
severance and other employee termination benefits. The majority of workforce
reductions were announced to employees on October 6, 2022 and are expected to be
substantially completed by December 31, 2022.
Forward-Looking Statements
This current report on Form 8-K contains forward-looking statements about the
business prospects of the Company, including, without limitation, statements
regarding the intended benefits of the Company's organizational redesign; the
number of employees impacted by the reduction in force; the Company's
expectations for annualized future cost savings, the Company's plans for
reinvesting such savings and the expectation that any remaining savings will
increase profitability; and the Company's expectations regarding the estimated
costs, the timing of such costs, and the timing of completion of the reduction
in force.
These forward-looking statements are predictions and involve risks and
uncertainties such that actual results may differ materially from these
statements. These risks and uncertainties include, among others: the assumptions
underlying the Company's expected benefits and the estimates of annualized
future cost savings and expenses associated with the organizational redesign and
reduction in force prove inaccurate, the reduction in force results in less
costs savings than projected, the Company incurs greater than estimated expenses
in connection with the reduction in force, the Company's business, financial
condition or operating results are adversely affected by the organizational
redesign or reduction in force, and those factors detailed in BioMarin's filings
with the Securities and Exchange Commission ("SEC"), including, without
limitation, the factors contained under the caption "Risk Factors" in BioMarin's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 as such
factors may be updated by any subsequent reports. Stockholders are urged not to
place undue reliance on forward-looking statements, which speak only as of the
date hereof. BioMarin is under no obligation, and expressly disclaims any
obligation to update or alter any forward-looking statement, whether as a result
of new information, future events or otherwise.
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