Assertio Announces Restructuring Plan and Leadership Changes

Expected to Reduce Costs by $45 Million Annually

LAKE FOREST, Ill., Dec. 15, 2020 (GLOBE NEWSWIRE) -- Assertio Holdings, Inc. (“Assertio” or the “Company”) (Nasdaq: ASRT) today announced a comprehensive restructuring plan designed to further reduce its cost base and right size its organization.

“To adapt to the current market environment and maximize shareholder value, we are refocusing and substantially reducing our operating footprint, which is expected to result in significant cost savings,” said Arthur Higgins, Chairman of Assertio. “Given recent changes in our product payor mix as well as the continued near term impact from the COVID-19 pandemic, we believe that restructuring the business will allow us to continue to provide our differentiated products to patients and better position Assertio for future success.”

The restructuring plan is expected to reduce Assertio’s total annual cost base by approximately $45.0 million, after giving effect to one-time restructuring costs. These reductions are in addition to the previously announced $40.0 million in synergies associated with the Zyla merger. The restructuring milestones are set to begin in December 2020, with a majority expected to be achieved by the end of the first quarter of 2021. The Company expects to recognize approximately $8.0 – $10.0 million in severance and restructuring charges in the fourth quarter of 2020 and throughout 2021 as a result of this plan. Additional details regarding the restructuring plan and restructuring charges will be provided at the time of the fourth quarter earnings call.

“We want to thank Todd Smith, who has shown himself to be a talented executive and commercial leader, who has decided to resign as our President and Chief Executive Officer and from our Board at the end of the year in support of our significantly reduced headcount infrastructure,” added Mr. Higgins. “In addition, Dr. Mark Strobeck, Chief Operating Officer of Assertio, will also resign at the end of the year. The Board wishes both Todd and Mark every success in the future and thanks them for their contributions.”

Dan Peisert, Assertio’s Chief Financial Officer, will assume the role of Chief Executive Officer and be appointed to fill Mr. Smith’s vacancy on the Board. Mr. Peisert joined the Company as Vice President Business Development in 2017 and has been the Company’s CFO since December of 2018, having overseen Assertio’s ability to repay over $720 million of debt since he joined. “We believe that Dan’s familiarity with all aspects of the Company, and his strong financial and business development skills, make him exceptionally well-qualified to lead our leaner organization and to assist in acquiring future growth drivers,” said Mr. Higgins.