MediPharm Labs provides update on VIVO integration and Board appointee
by CM staff
Since signing of the definitive arrangement agreement with VIVO in December 2022, management has been working to develop operational plans for the company to meet the goal of being EBITDA positive in the first half of 2024.
BARRIE — MediPharm Labs begins restructuring immediately following completion of its acquisition of VIVO and reiterates confidence in $7 to 9M of projected annualized synergies. MediPharm Labs appoints Michael Bumby, former Chief Financial Officer of VIVO, to the Board of Directors of MediPharm.
Since signing of the definitive arrangement agreement with VIVO in December 2022, management has been working to develop operational plans for the company to meet the goal of being EBITDA positive in the first half of 2024.
In the first week post-closing of the transaction, all employees were made aware of the combined company’s objectives, and organizational restructuring initiatives were communicated.
The company has now implemented its plans to reduce the combined MediPharm and VIVO non-direct labour workforce by approximately 30 per cent, since the announcement of the transaction. It is expected that all headcount related savings will be fully implemented within four to six months. This is in addition to previously announced restructuring efforts made separately by both companies in 2022. As a result of these efforts, total non-direct labour headcount between both companies will have been reduced by approximately 45 per cent as compared to January 2022.
Restructuring has been implemented at all levels including the C-Suite. Senior executive level positions have now been reduced by 50 per cent as compared to January 2022. These senior level changes represent the largest portion of employee related cost savings and position a leaner senior management team to deliver on operational objectives.
These headcount reductions are paired with cost synergies related to combining and centralizing some company functions and reducing various public company costs previously incurred by both MediPharm and VIVO.
“We are excited about the VIVO integration, and were committed to giving our employees and customers organizational clarity as early as possible,” said David Pidduck, CEO, MediPharm Labs. “I want to recognize the many talented leaders and employees who have helped build both organizations over the years. The newly combined team is now focused on improving profitability by both driving revenue and reducing costs.”
