Amneal is in talk with Impax labs for possible merger. Anyone heard or anticipates layoffs coming at Amneal? Amneal last year tried to sell itself to Novartis and now seeking to merge with Impax. Is that a sign of management incompetence or some serious issues with Amneal?
6 replies (most recent on top)
I agree with @PLjpscZ-1kvo.
Impax is publicly traded company so they have many stake holders who will mark the Impax as surviving company. So it will be certainly THE END for amneal if this merger happens. Amneal does not have enough revenue generation pipeline or stake holders to prove themselves competent for survival. And all industrial mergers comes with the consequences. As someone said in this page Impax has better products. This is clear cut sign to get out of this company. Even if deal will succeed or not, everyone now know what management wants to do. Amneal just want to get their cash and run away. So this is the best time to start dusting off your resumes and find better opportunities...
In a merger, one corporation merges with another to become a single ongoing corporation.
One company is designated the “surviving,” (i.e. Impax) and the other the “disappearing,” corporation (i.e. Amneal). By operation of law, the surviving corporation acquires all of the assets and succeeds to all of the liabilities of the disappearing corporation, and the disappearing corporation ceases to exist as a separate legal entity.
In a merger, the stockholders of the acquired corporation typically receive cash, stock of the
surviving corporation or some combination of stock and cash.
End is near for Amneal sooner or later. Amneal is going to disappear. Run Run Run....
Both Impax and Amneal, which is owned by brothers Chintu and Chirag Patel, are small. Neither ran among the top 15 generics makers. Combined they have sales of about $2 billion. Impax’ market cap was about $1.6 billion before word leaked out of the talks, so a deal could run about $2 billion or so, WSJ speculates.
Last year, there were reports that Novartis was interested in buying Amneal to add some heft to its Sandoz generics unit. The rumor mill put the price on that deal at $8 billion. That deal didn't materialize, and one between Impax and Amneal may not, either.
But with generics makers’ sales declining as merged wholesalers demand deeper discounts, analysts do expect consolidation. Industry players figure that will give generics companies more pricing power of their own and take some competitors out of the market.
Amneal tried to sell itself to Novartis in 2016 but the deal did not go well. Most probably Novartis realized Amneal's internal flaws. Now they are posting corporate promotional videos almost after a month of announcing talks with Impax merger. This may be an indication that Impax might be cancelling the deal as well and now they are promoting themselves in market again. Clearly the family business model works well up to certain size of the company. Afterwards it becomes difficult to manage. That is why Amneal is trying to sell or merge itself into some other corporations and adopt a new and effective company culture. Sooner or later they will have to break it down and reconstruct the model of how they operate the business. Majority of their employees are non US citizens so that is amid sign of collapse under Trump Administration as well.
Impax has better products than Amneal. So it could be possible that they may choose to stop working on some of the Amneal’s generic formulations. This may create an imbalance. No layoffs are expected yet but there will be lot of shuffling between teams IF Impax merger goes well.
I have a strong feeling that Amneal is hiding something. I worked for it in past. They have worst operational ethics and some of their experiment procedures does not comply with FDA regulations either. Worst company to work for.