BioMarin Pharmaceutical Inc.
08/28/2024 | Press release | Distributed by Public on 08/28/2024 15:03
Reorganization Form 8 K
Item 2.05 Costs Associated with Exit or Disposal Activities.
On August 23, 2024, BioMarin Pharmaceutical Inc. ("BioMarin" or the "Company") committed to a plan to reduce its global workforce by approximately 225 employees. The Company decided to reduce its workforce in connection with organizational redesign efforts as well as the Company's updated strategy for ROCTAVIAN and its decision to discontinue development of BMN 293, as previously announced by BioMarin on August 5, 2024. The Company estimates that it will incur aggregate pre-tax charges representing one-time cash expenditures for severance and other employee termination benefits of approximately $30 - $35 million, of which the majority is expected to be incurred during the second half of 2024. Impacted employees were notified by August 28, 2024, and workforce reductions are expected to be substantially completed by the end of 2024.
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 Company's organizational redesign; the Company's updated strategy for ROCTAVIAN; discontinuation of the development of BMN 293; the number of employees impacted by the reduction in force; 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 estimate of expenses associated with the reduction in force prove inaccurate; 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, the reduction in force, or actions taken regarding ROCTAVIAN or BMN 293; 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, 2024 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.