Trump’s Corporate Tax Holiday Proposal Will Hurt Job Creation

Posted in BioBusiness, BioJobBuzz

The notion that corporate tax holidays– congressional orders that allow corporations like Apple, Microsoft, Pfizer and others to bring overseas profits back to the US without penalty–create jobs is misleading and, based on previous such tax holidays mostly untrue.

According to an article in today’s NY Times Business section (a reliable source of real news), corporate tax holidays typically result in mergers and acquisition that typically result in job cuts.

…the last time Congress initiated a tax holiday, in 2004. The top 15 repatriating companies brought home $150 billion but reduced their work force by 20,931 jobs, according to a 2011 study commissioned by the Senate Permanent Subcommittee on Investigations.

In the coming months, Trump and his minions will be pushing for a new corporate tax holiday so that new jobs can be created. While this is certains to send shivers down the spines of most Trump supports, any jobs that will be created or not lost will not be the ones that midwestern small town employees or coal mines will benefit from. For example, the  corporations with the largest amounts of overseas monies are Apple and Microsoft, two technology companies that are unlikely to create new jobs for coal miners, service employees or blue collar workers.

While many Trump supporters believe that Barack Obama and the Democrats were responsible for manufacturing job loss in the US, the real reasons for their loss was mechanization/robotization and globalization. The lost manufacturing jobs are never coming back–despite Trump’s assertions that they are—and the only way unemployed factory workers will find new work is through retraining or moving to urban centers where jobs for unskilled workers appear to be on the rise.  Corporate tax holidays, income tax cuts and reduction in social programs will not lead to new job creation but to job loss.

Don’t let Trump destroy the economic recovery that President Obama brought to this nation.

Until next time…

Good Luck and Good Job Hunting

Another Day: More Pharmaceutical Layoffs

Posted in BioJobBuzz, Uncategorized

Endo International PLC, a Dublin, Ireland-based global speciality pharmaceutical company that sells generic and branded prescription drugs, today announced that it plans to layoff 375 US sales employees most of whom work in its branded pain sales force. The company manufactures several branded opioid pain medicines including OPANA ER® and Percocet® Ostensibly, the job cuts will yield  will free up $90 to $100 million that the company will used to restructure and refocus its business units.

The ongoing very public national discussion about opioid abuse has caused Endo to re-evaluate its new product development strategy ( the company stock has been hemorrhaging over the past year or so). To that end, the company announced a new focus on the drug Xiaflex, a penis curvature drug that the company acquired in its $2.6 billion buyout of Auxilium.  By focusing on new markets, the company hopes to reduce its financial dependency on its legacy opioid business that has been waning as new legislation restricting patient access to opioids continues to be passed in States that have been devastating by the growing opioid epidemic sweeping the US.

Until next time…

Good luck and Good Job Hunting

 

Occupy Novartis?

Posted in BioBusiness

Angry with recent job cuts announced by the Swiss pharmaceutical giant Novartis, protesters, this past Saturday, gathered in Basel and beside the villa of its former CEO and Chairman Daniel Vasella to express their displeasure with the company’s decision to layoff workers.

In Basel, about 1,000 people gathered and demanded that Novartis reverse its decision to layoff 1,100 people who work at the company. Meanwhile, about 20 protestors gathered in a field opposite Vasella’s walled lakeside Mansion. Two of the protestors handed Vasella a “fake pink slip” and according to witnesses he laughed and took the gesture in stride.

Vasella, who is not a stranger to protests, is one of Switzerland’s highest-paid executives and in 2009 animal rights activists set fire to his Tirolean hunting lodge to protest Novartis’ use of animals to test pharmaceuticals and consumer products. 

Currently, the Occupy Wall Street movement in the US has primarily targeted banks and financial institutions. However, two weeks ago, a group of protestors in Croton, CT, staged a demonstration at Pfizer headquarters to express their anger a recent layoffs announced by the company.

Until next time…

Good Luck and Good Job Hunting!!!!!!!

 

Tis The Season: Novartis to Cut 2,000 Jobs

Posted in BioJobBuzz

It seems that big pharma always waits for early Fall to announce pending job cuts. Novartis, Europe’s second largest pharmaceutical company, announced two days ago that it would eliminate 2,000 jobs mainly in the US and Switzerland but add new employees to operations in emerging markets like India and China. Novartis is just another addition to a growing list of big pharma companies that are slashing jobs in the US and Europe and hiring new employees in lower cost markets.

The announce cuts represent a 1 percent reduction in Novartis’ global workforce. The cuts will be implemented over the next three years and are predicted to save the company in excess of $200 million annually. 

According to a company spokesperson, Novartis will eliminate 1,100 jobs in Switzerland, with the balance in the U.S., Jimenez said. Some research will be moved to the U.S. from Switzerland, and reductions will be made in technical research and development, data management, clinical trial monitoring, drug safety and regulatory affairs. Novartis will add 700 positions in China and India in data management and trial monitoring.

As part of the reorganization and job cuts the company will close an over-the-counter drug manufacturing plant in Nyon, Switzerland and chemical production facilities in Basel and Torre, Italy.

The current cuts come after Novartis announced last November that it would eliminate 1400 U.S. sales jobs and more recently in March that it would reduce operations in the UK.

Although life science pundits recently suggested that job cuts in the pharmaceutical industry are slowing and may have hit rock bottom, it appears that the carnage is still taking place and will likely continue well into the future as more resources and monies are invested in emerging markets.

Until next time…

Good Luck and Good Job Hunting

 

Sanofi Aventis to Reduce Sales and Marketing Workforce to Cut Costs

Posted in BioJobBuzz

The expanding European financial crisis is forcing drug makers to continue to explore ways in which to cut costs. Faced with budget deficits amid a global economic crisis, European countries such as Germany, France and Greece have cut or plan to cut their health-care spending. Greece last month ordered drugmakers, including France’s largest drug maker Sanofi-Aventis, to cut prices by 3 percent to 27 percent to help rescue its economy. 

Not surprisingly, Sanofi Aventis responded by announcing new job cuts and more stringent cost control measures. Yesterday, Sanofi’s Chief Financial Officer announced at an analyst meeting in Los Angeles that “We are restructuring. We are changing our marketing model. We are merging sales forces, we are reducing sales forces, having a multiproduct sales force. We will continue to do that.” Most of the job cuts and cost saving measures will come at the expense of sales and marketing personnel. The size of pharmaceutical R&D and sales and marketing workforces have been devastated over the past three years with over 200,000 employees losing their jobs.

Sanofi-Aventis Chief Executive Officer Chris Viehbacher, who joined the company in 2008, shut or sold plants and canceled the least promising research projects in a bid to trim 2 billion euros ($2.46 billion) in costs. These actions, coupled with the most recent restructuring efforts were enacted to ensure 2013 earnings are at least equal to 2008 profit. Like most other big pharma companies, Sanofi has been looking to emerging markets and consumer products for new income as competition from generic drugs hurts sales. The anti-clotting drug Plavix which is Sanofi’s largest selling drug generating over $4.0 billion annually will lose patent protection in 2011-2012. Bristol Myers Squibb, Sanofi’s marketing partner for Plavix in the US, also exceeded $4.0 billion in sales last year.

Sanofi also announced today that it acquired the assets of Montreal-based Canderm Pharma, Inc a consumer products company for $1.9 billion signaling its intention to aggressively enter the North American consumer healthcare products markets.

Until next time…

Good Luck and Good Job Hunting

 

Roche Will Cut 600 Jobs in New Jersey

Posted in BioJobBuzz

Roche disclosed in a regulatory filing that it will plans to eliminate 500 positions in New Jersey by the end of this month, related to last year’s acquisition of Genentech Inc., and plans to cut another 100 jobs in the state by June. While the cuts were expected after Roche acquired Genentech last year and announced it would move its US headquarters from Nutley, NJ to South San Francisco, it wasn’t clear how extensive the job loses would be. The company is closing down all manufacturing operations at the aging Nutley site.

This is more bad news for the State of New Jersey which has borne the brunt of the pharma downsizing trend that began in earnest about 4 years ago. As many of you may know, New Jersey has the highest concentration of pharmaceutical employees in the US. The loss of pharmaceutical jobs coupled with an enormous budget deficit suggests that it will be many years before New Jersey is able to recover from the economic downturn.

Roche, which had 2009 revenue of about $45.9 billion, employs more than 80,000 people worldwide.

Until next time…

Good Luck and Good Job Hunting (forget New Jersey)

 

The Carnage Continues: GlaxoSmithKline to Slash an Additional 4,000 Jobs

Posted in BioBusiness

GlaxoSmithKline (GSK) Britain’s largest pharmaceutical company today announced it plans on slashing 4,000 jobs over the coming months. The bulk of the cuts will be in America and Europe, and are part of the company’s efforts to shift resources away from low-growth territories into parts of the world with greater scope to expand sales, most notably Asia. GSK’s currently employs 99,000 workers worldwide. The reduction in headcount will be combined with a drive to make the company’s research and development more cost-efficient. 

While the job losses will not be as severe as those announced last week by its rival Astra Zeneca, they will provide further depressing news for a sector that is fighting to contain costs as it reduces its reliance on big-selling blockbuster drugs, many of whose patents will expire in the next two to three years.

The pipeline of new drugs at GSK is much deeper than at many of its rivals, say industry analysts. The company’s roster of planned launches includes Menhibrix, a vaccine to combat meningitis, and Benlysta (belimumab), a novel, monoclonal antibody treatment for systemic lupus erythematosus that it is co-developing with Maryland-based, Human Genome Sciences. In total, the group has more than 30 products in the advanced stages of development and testing.

While GSK continues to develop new drugs, it has increasingly been turning to emerging markets to find and sustain corporate growth. This has meant that thousands of jobs have already been sacrificed in the West, although the company is adding staff elsewhere. For example, it recently cut 2,000 sales jobs in America but added 1,500 staff in China. Also, GSK’s vaccine division has suffered a few regulatory setbacks with its pneumococcal vaccine Synflorix and its cervical cancer vaccine Cervarix. The loss of market share in these areas has put additional financial pressure on the company.

Like many of its competitors, GSK is looking to other divisions of the company to cover projected losses in the pharmaceutical sector. Recently, GSK has shifted a lot of its attention to its consumer products division, which owns brands such as Lucozade and Ribena soft drinks, Aquafresh and Sensodyne toothpaste, and over-the-counter medicines such as Panadol painkillers and Alli, a weight-loss pill. Analysts predict the division will have raised its annual sales 18% to £4.7 billion. A deal signed last year to increase sales of Lucozade in China has provided the blueprint for how the company would like to develop the consumer healthcare side of its business.

Similarly, last week, Sanofi-Aventis, a French rival, announced a joint venture with Minsheng Pharmaceutical Group, a Chinese company, to sell vitamin pills and nutritional supplements. Also, Pfizer recently announced it would bid for the possibility of purchasing the financially-troubled German generics manufacturer Ratiopharm; signaling the possibility that the world’s largest branded pharmaceutical manager may be toying with the idea of getting into the generics business.

Late last year I predicted that more pharmaceutical company employees would loss their jobs. Sadly, this prediction has come true. That said, I am surprised at the scope and size of the layoffs that have already taken place in 2010. I suspect that more layoffs are likely in the near future if the economy doesn’t turn around anytime soon.

Hat tip to Ed at the Pharmalot blog!

Until next time…

Good Luck and Good Job Hunting (try medical devices or biotech)!!!!!!!!

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More Pharmaceutical Industry Carnage: Pfizer Cuts 680 Jobs in Pennsylvania; More Likely

Posted in BioJobBuzz

Just when you thought that holding on to a job couldn’t get any worse, Pfizer formally announced yesterday that it would be eliminating 680 jobs from a combined workforce of 4,500 at two former Wyeth facilities in Pennsylvania. According to a company spokesperson, 450 of the layoffs would come from Collegeville and 230 from Great Valley. They will take effect March 12. Persons affected by the layoffs will each qualify for a separation package that will include severance payments, continued medical benefits, and help finding a new job via outplacement services.

While some layoffs were expected, they were much greater than some state legislators were led to believe in earlier discussions with Pfizer. And this isn’t likely to be the end of corporate reorganization at Pfizer PA-based facilities. This is because Pfizer is shutting down the Great Valley facility. There is speculation that after this round of layoffs that the 670 remaining Great Valley employees will be transferred to the Collegeville site or other Pfizer locations. And, it is likely that more Pfizer employees will lose their jobs because Pfizer previously announced that it intended to eliminate as many as 15% or 20,000 jobs after its $68 billion acquisition of Wyeth.

Over the past several months, Pfizer, Eli Lilly, AstraZeneca, Johnson & Johnson and GlaxoSmithKline have announced more than 40,000 job cuts which have devastated the pharmaceutical workforces in Pennsylvania, New Jersey and Delaware. 

Until next time…

Good Luck and hmmmmmm…are there any pharmaceutical jobs left to hunt for?

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Merck to Eliminate 16,000 More Jobs

Posted in BioJobBuzz

As expected, Merck announced today that it would eliminate an additional 16,000 job after the merger with Schering Plough is completed. The combined company is trying to get its headcount down to around 90,000 employees. The new job cuts represent a 15% reduction in the workforce of the combined company.

While the merger may have made business sense, it doesn’t bode well for future employment for life scientists in New Jersey.

Until next time…

Good Luck and Good Job Hunting (are there any left?)

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Pharma Job Cuts: The Domino Effect

Posted in BioJobBuzz

While the domino theory was incorrect when it came to the spread of communism during the Cold War, there may be a kernel of truth to it when it is applied to today’s pharmaceutical industry. On Tuesday, Pfizer announced that it would lay off 800 researchers. Not to be outdone by Pfizer, Roche announced today that it plans to lay off about 780 workers over the next two to three years because of “worsening economic conditions.”

After spending the last decade or so associated with the pharmaceutical industry, one thing that I have learned is that there isn’t a single company that I can think of that wants to be the first to do anything. However, when a pharma company makes a bold move, the others are very quick to follow because they “don’t want to be perceived as not being “cutting edge” or keeping pace with their competitors. To that end, the domino theory may warrant some further investigation when it comes to day-to-day operations of big pharma.

Until next time,

Good Luck and Good Job Hunting!!!!!!!!