Irish drug company Shire Plc (SHP.L,SHPG) said Wednesday that it plans to relocate over 500 jobs to Massachusetts from its Chesterbrook, Pennsylvania site, and also establish Lexington, Massachusetts as the company's U.S. operational headquarters.
In addition, the company named Jeff Poulton, Head of Investor Relations, as interim CFO effective January 1, 2015. The CFO position will be based in Lexington. Poulton will succeed interim CFO James Bowling, who will now be leaving Shire on February 28, 2015.
Shire noted that the transition, which will decrease its presence in Chesterbrook, Pennsylvania, is a continuation of its 'One Shire' efficiency program that will enable it to streamline business globally through two principal locations - Massachusetts and Switzerland.
The company anticipates that simplifying operations in two principal locations will increase efficiencies. The company expects to realize about $25 million in annual savings beginning in 2016.
Shire said it plans to move employees in several phases, beginning in the first quarter of 2015, and targets completion by the first quarter of 2016. The company added that all directly impacted employees who do not relocate will be offered severance, outplacement service and other employee assistance.
Flemming Ornskov, Chief Executive Officer of Shire said, "Shire has a great opportunity to combine our Chesterbrook and Lexington talent with the leading biotech resources in the Massachusetts area, and we consider ready access to these resources an important element in the future growth of our company."
In late October, Shire said that interim CFO James Bowling notified the company's board of directors of his decision to step down from his current role to pursue a new career opportunity as CFO of UK-based water utility Severn Trent Plc (SVT.L). At that time, the company had said that Bowling will leave Shire at the end of the first quarter of 2015.
The incoming interim CFO, Poulton, joined Shire in 2003 and has held leadership positions in finance supporting the neuroscience, gastrointestinal and rare disease business units.
He oversaw the rare diseases business unit operations in North America, Latin America, and Asia Pacific, and most recently led the integration of Viropharma's rare disease products into the Shire portfolio.
Prior to joining Shire, Poulton served at Cinergy Corp. and PPG Industries Inc. (PPG), in a variety of corporate finance and business development roles.
In early October, U.S. drug maker AbbVie, Inc. (ABBV) agreed to terminate its proposed $54 billion takeover deal for Shire, after its board withdrew support and recommendation for the deal. The move came amid the proposed changes in tax rules in the U.S.
SHPG is trading at $209.50, down $0.50 or 0.24 percent on a volume of 117,924 shares.
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