By Tess Stynes
Shire PLC said it plans to relocate more than 500 positions from
its Chesterbrook, Pa., location to Lexington, Mass., where it plans
to establish its U.S. operational headquarters.
The move is part of a broader effort to streamline the
pharmaceutical company's global operations and will result in two
principal locations, Massachusetts and Switzerland, along with a
limited number of regional and country-based offices globally.
Shire is aiming for cost savings of roughly $25 million a year
starting in 2016 as a result of the moves.
Shire Chief Executive Flemming Ornskov said the move provides an
opportunity to combine its Chesterbrook and Lexington talent with
the leading biotech resources in the Massachusetts area.
"We consider ready access to these resources an important
element in the future growth of our company," he said in a news
release.
The company also expects the moves will allow improved
coordination and performance of its commercial and
research-and-development teams.
Shire plans to relocate employees in phases starting in the
first quarter of next year and is aiming to wrap up in early
2016.
Shire also said it now expects interim Chief Financial Officer
James Bowling to leave the company at the end of February. Last
month, it had indicated he would depart at the end of the first
quarter to join Severn Trent PLC as the British water utility's
finance chief. The announcement came only days after the board of
AbbVie Inc. walked away from a $54 billion planned takeover of
Shire.
Mr. Bowling was named to the interim role as the company
searched for a permanent to successor to Graham Hetherington, who
stepped down earlier this year. Shire's investor relations head
Jeff Poulton will assume the role of interim finance chief starting
Jan. 1. That post will be based in Lexington, Mass.
Write to Tess Stynes at tess.stynes@wsj.com
Access Investor Kit for Severn Trent Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B1FH8J72
Access Investor Kit for Severn Trent Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US81814P2092
Subscribe to WSJ: http://online.wsj.com?mod=djnwires