Amneal Pharmaceuticals, Inc. is closing its Hayward, CA facilities and operations as part of an effort to streamline operations following an analysis of the company’s product portfolios, plant capacities, and capabilities as a result of the recent merger with Impax Laboratories.

The company will immediately implement plans to phase out the Hayward facilities with an expected completion timeline of approximately 15 months. Amneal expects to transfer products manufactured at the Hayward facility to the company’s lower-cost facilities in the U.S. and India. The facility closures are expected to eliminate 550 positions.

“We are taking these steps to streamline our operations, accelerate savings and generate resources to drive organic growth as well as pursue external growth opportunities,” said Rob Stewart, president and chief executive officer of Amneal. “The acceleration of these initiatives primarily in manufacturing and R&D operations, combined with our large and diverse generic pipeline of potential high-value product opportunities, will help us achieve our commitment to generate approximately $1.1 billion of adjusted EBITDA by the end of 2020. Today’s announcement is not expected to materially impact our full year 2018 adjusted EBITDA guidance of $600 million to $650 million and full year adjusted EPS of $0.95 to $1.10 per diluted share.1 We do expect a significant favorable impact beginning in 2019.”