SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BioMarin Pharmaceutical Inc., a Delaware corporation | ||||||
| Date: October 6, 2022 | By: | /s/ G. Eric Davis | ||||
| G. Eric Davis Executive Vice President, Chief Legal Officer | ||||||