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| JAZZ > SEC Filings for JAZZ > Form 8-K on 16-Dec-2008 | All Recent SEC Filings |
16-Dec-2008
Costs Associated with Exit or Disposal Activities, Change in Directors o
On December 15, 2008, Jazz Pharmaceuticals, Inc. (the "Company") committed to a plan of termination that will result in a work force reduction of 71 employees in all areas of the organization other than the sales force. Affected employees will be eligible to receive severance payments and payment by the Company of each affected employee's COBRA premiums for up to three months. The Company will also provide outplacement assistance. The Company is undertaking this workforce reduction to lower operating expenses and preserve capital while continuing to focus on its commercial products. Development of the Company's JZP-6 and JZP-8 product candidates is continuing. The Company expects to complete this reduction in force by the end of January 2009.
As a result of this reduction in force, the Company estimates that it will record a one-time charge of approximately $1.9 million in the fourth quarter of 2008. The charge that the Company expects to incur in connection with the reduction in force is subject to a number of assumptions, and actual results may differ. The Company may also incur other charges not currently contemplated due to events that may occur as a result of, or associated with, the reduction in force.
This Item 2.05 contains forward-looking statements, including, but not limited to, statements related to the expected severance costs and related estimated severance-related charge, the timing for completion of the reduction in force, and the Company's plans to focus on its commercial products and its JZP-6 and JZP-8 product candidates. These forward-looking statements are based on the Company's current expectations and inherently involve significant risks and uncertainties. The Company's actual results and the timing of events could differ materially from those anticipated in such forward looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the development of the Company's JZP-6 and JZP-8 product candidates, including the risk that clinical trial results may require the Company to discontinue their development; and risks related to our ability to obtain sufficient additional funding. These and other risk factors are discussed under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 filed by the Company with the Securities and Exchange Commission on November 14, 2008. In addition, the Company's workforce reduction costs may be greater than anticipated and the workforce reduction and any future workforce and expense reductions may have an adverse impact on the Company's commercial and development activities. The Company undertakes no duty or obligation to update any forward-looking statements contained in this Item 2.05 as a result of new information, future events or changes in its expectations.
On December 11, 2008, Matthew K. Fust, the Company's Executive Vice President and Chief Financial Officer, notified the Company of his decision to resign from the Company effective December 31, 2008. Mr. Fust will not receive any severance benefits as a result of his resignation.
On December 16, 2008, the Company issued a press release announcing the matters described in Item 2.05 of this Form 8-K and the resignation of Matthew K. Fust, the Company's Executive Vice President and Chief Financial Officer. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Number Description
99.1 Press release, dated December 16, 2008, entitled "Jazz Pharmaceuticals
Announces Reduction in Force to Reflect Streamlined Operations"
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