Copenhagen, 2012-12-03 17:19 CET (GLOBE NEWSWIRE) --
ALK has finalised the planning of the initiatives to streamline its business structure that were announced on 12 November in the nine-month interim report (Q3) 2012 as part of ALK's updated strategy.
As previously informed, the initiatives under the Simplify programme will entail restructuring costs of approximately DKK 100 million up to 2016. ALK can now disclose that approximately DKK 60-70 million of these restructuring costs are expected to be recognised in 2012.
The costs are related to a streamlining of the European sales and marketing organisation as well as to a simplification of the production, as ALK will gradually phase out and close down three production facilities and consolidate the activities in centres of excellence. Furthermore, the business structure will be streamlined in other areas, including Finance and IT functions which will be organised in global functions. These changes imply that 120-130 positions will be made redundant over the next few years.
As a result of the above, ALK expects to recognise costs of approximately DKK 60-70 million in a special items line in its income statement for 2012. EBITDA before special items is still expected to exceed DKK 300 million and total revenue of up to DKK 2.4 billion is still expected for 2012.
The initiatives under the Simplify programme will lead to cost savings of approximately DKK 100 million net per year to be seen gradually from 2013 and with full effect from 2016. In addition, the streamlining of the sales and marketing organisation will result in savings that will be reinvested in concrete growth initiatives to ensure ALK continued growth.
ALK-Abelló A/S
Jens Bager
President and CEO
For further information please contact:
Jens Bager, President and CEO, tel. +45 4574 7576
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Press: Martin Barlebo, tel. +45 4574 7901, mobile +45 2064 1143
About ALK
ALK is a research-driven global pharmaceutical company focusing on allergy prevention, diagnosis and treatment. ALK is the world leader in allergy immunotherapy — a unique treatment of the underlying cause of allergy. The company has approximately 1,800 employees with subsidiaries, production facilities and distributors worldwide. ALK has entered into partnership agreements with Merck and Torii to commercialise allergy immunotherapy tablets in North America and Japan, respectively. The company is headquartered in Hørsholm, Denmark, and listed on the NASDAQ OMX Copenhagen A/S. Find more information at www.alk.net.