WARNER-LAMBERT TO TAKE $468 M CHARGE

US pharmaceutical and consumer products group Warner-Lambert said it is to take a $468 million pretax charge in the fourth quarter for a restructuring program that will include the loss of 2,800 jobs (around 8% of its employees) over the next few years.

The company's chairman, Melvin Goodes, said W-L is reacting to "the growing impact of managed care and other cost containment efforts in the USA and Europe," and the "partial loss" of tax credits in Puerto Rico, where it has several plants. He also pointed out that the Food and Drug Administration has still not allowed resumption of production of several products at two Puerto Rican plants, resulting in a loss of $150 million in 1993 sales.

There are also intentions to reduce R&D spending next year from the current level of $375 million, and there are plans to restructure the drug operations to increase productivity, speed up response to customers and focus on products that show good growth prospects, a spokesman said.