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

 

It’s the Holiday Season: Time for More Job Cuts in Pharma

Posted in BioBusiness, BioJobBuzz

While the holiday season (beginning on Thanksgiving) is supposed to be joyous, it is usually the time of year that many life sciences and other large corporations announce job cuts. As expected, two companies, Mylan and Lilly announced today that they will be cutting the size of their work forces and laying off employee.

Mylan, whose CEO was forced to appear before Congressional committees because of the company’s egregiously high price it was charging for EpiPens, announced that it may lay off of as many as 3,500 workers. The reason for the layoffs was to “reduce redundancy” that resulted from Mylan’s $5.3 billion acquisition of Abbott Laboratories generic drug business, the $7 billion it paid to purchase the Swedish drugmaker Meda and the $1.0 billion for several topical skin medications from Renaissance Holdings. The layoffs will purportedly impact less than 10% of Mylan’s global workforce and help to cut costs and refocus operations at the generic drug manufacturer.

Likewise, troubled pharmaceutical manufacturer Lilly, whose CEO abruptly retired earlier this year announced that it was trimming its US pharmaceutical sales force. The announced cuts were related to the recent Phase 3 failure of the company’s Alzheimer’s project solanezumab. A company spokesperson did not disclose the number of sales representative who would lose their jobs.

Finally, this past September, the Danish company  Novo Nordisk, a world leader in the diabetes market, announced it would layoff 1,000 employees worldwide to cut costs and focus it efforts on developing “truly innovative” diabetes products.  Meanwhile, behind the scenes, speculation suggests that the layoffs are in response to payer pressures that are being brought to bear in the US, the company’s largest market.  Many of the cuts are expected in R&D where innovation has been lacking according to company executives.

Although these jobs cuts are taking place, the good news is that these workforce reductions are smaller than those announced in holiday seasons past!

Until next time

Good Luck and Good Job Hunting

 

It’s Layoff Season

Posted in BioBusiness

Yes–it is that time of year again–layoff season!  To that point, Amgen announced today that it was laying off an additional 1,200 jobs above the 2,900 the company announced it would layoff this past July.   Together, these layoffs represent about 20% of Amgen’s global workforce.  Amgen joins other life sciences companies including Novartis, Sanofi, Pfizer, AstraZeneca and others that have announced layoffs in 2014.

Companies like to announce layoffs in the Fall, to let employees who may be affected by the downsizing to not expect their bonuses this year (which are typically paid at years end).  While this is strictly business, it does kind of put a damper on holiday season joy.  And, because corporations are considered to be “people” –at least according to the US Supreme Court–they ought to show a little more sensitivity and compassion when announcing downsizing and layoffs before the holiday season.

Until next time…

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

Tis the Season…to Lose Your Job

Posted in BioJobBuzz

It is that time of year again….the layoff season.  Coincidentally, the end of the fiscal year frequently overlaps with the beginning of the holiday season.  This means that profits and losses for the past year have already been tabulated and new budgets have been crafted for the new fiscal year.  Not surprisingly, this is when management has the numbers and metrics it needs to determine upcoming staffing levels and whether or not layoffs are necessary.

To wit, yesterday Bristol Myers Squibb announced that it was laying off 75 workers in its R&D division to realign research priorities and cut costs. Also, Ariad said yesterday that it was reducing its US workforce  following its decision to temporarily suspend the marketing and commercial distribution of Iclusig® (ponatinib) in the U.S. Earlier this week, Novartis indicated that it would slash 500 jobs as it realigns its research efforts and attempts to control costs in both Europe and the US. And Shire announced that is was cutting 180 jobs in a UK facility. Finally, a little over a month ago, Merck announced that it would slash 8,500 R&D and marketing/sales positions worldwide.

Admittedly, getting laid off at the beginning or during the holiday season is a horrible thing. That said, since things are slowing down anyway, it gives persons who received pink slips sufficient time to beef up their resumes/CV and stash their year end bonuses into their IRA or checking account.

Tis the season….

Until next time…

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

Even Generics Companies Are Not Immune: Teva to Slash 5,000 Jobs!

Posted in BioBusiness, BioJobBuzz

Despite the fact that over 80% of the drugs sold in the US are now generic, Teva, the world’s largest generic drug manufacture (based in Israel) announced yesterday that it will eliminate 5,000 jobs (about 10% of its global workforce) by the end of 2014. According to the company, this action is part of Teva’s worldwide restructuring plan which was introduced in December 2012.

While Teva is generally known as a generic drug manufacturer, it does generate a substantial part of its sales revenue for a branded injectable multiple sclerosis drug called Copaxone lost patent protection.  According to a post at the Pharmalot Blog

The move comes less than three months after a US court invalidated the 2015 patent on its Copaxone multiple sclerosis drug. The decision means patent protection for the drug, which generates about half of company earnings and dominates the MS market, may prevent rivals from selling lower-cost versions of the injectable drug only until next year.

In recent years, Teva has made major investments into biosimilar drugs and presently has two approved product –( Lonquex (XM22 lipegfilgrastim) and Tevagrastim (filigrastim)–on the market.  At present, while Congress passed legislation to allow biosimilars to be approved and sold in the US, the Food and Drug Administration has been extremely slow in translating the legislation into a functional and understandable legal regulatory pathway for approval of biosimilars.

Look for job cuts in the pharmaceutical industry (Lilly ?) in the next few months as we are entering prime layoff announcement season.

Until next time…

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

 

The Other Shoe Has Finally Dropped: Merck to Eliminate 8,500 Jobs

Posted in BioBusiness, BioJobBuzz

After Merck rehired Roger Perlmutter to replace Peter Kim as head of R&D (he left Merck about 10 years ago to lead Amgen R&D), it was pretty obvious that reorganization and job cuts were likely. However, it was not clear, until today, how extensive the cuts would be and what exactly what would be changing at Merck.

Today, Merck revealed plans to eliminate about 8,500 jobs–mainly in R&D, marketing and sales–in an attempt to save $2.5 billion by the end of 2015. In addition to the job cuts, R&D focus will be shifting and Merck’s headquarters will be relocated again (it was moved from Whitehouse Station to Summit several years ago) to Kenilworth, NJ (the former headquarters of Schering Plough which Merck purchased for roughly $41 billion in 2009)

According to a post at the Pharmalot Blog, while it is not exactly clear where the job cuts will take place, most industry insiders expect that the majority of them will likely take place in NJ.  The shift in R&D focus is intended to emphasize oncology, diabetes, acute hospital care, vaccines, oncology and a greater effort in biologics. Further the company intends to either license or discontinue research on “selected late-stage compounds” and reduce its investment in “platform technologies.”

Once one of America’s preeminent pharmaceutical companies, Merck has stumbled over the past decade (with the Vioxx scandal and the Vytorin and Zetia controversies) and it continues to struggle with regulatory approval of some of its new medicines. Perlmutter was hired to transform R&D and bring his expertise in oncology to bear at Merck.

Time will tell.

Until next time…

Good Luck and Good Job Hunting!!!!!

Valeant Pharmaceuticals to Eliminate 2850 Jobs

Posted in BioBusiness

Valeant Pharmaceuticals which recently purchased Bauch and Lomb for $8.7 billion today announced that it would eliminate approximately 2850 jobs (from its 19,000 person workforce) to save roughly $800 million over the next year and half.

According to a post on today’s Pharmalot blog:

Specifically, Valeant (VRX) will trim anywhere from 10 percent to 15 percent of its headcount, which numbers about 7,500 Valeant workers and between 11,000 and 12,000 Bausch & Lomb employees, a Valeant spokeswoman tells us. While corporate headquarters will remain in Laval, Quebec, and US headquarters and the new US eye health unit will stay in New Jersey, other facilities will be moved or closed.

While these cuts were not unexpected, it is still very difficult for those who will be losing their jobs to finally get the news.

There is likely to be more consolidation (and layoffs) in the life sciences sector as the biotech IPO craze continues to sizzle and China’s pharmaceutical industry begins to sputter.

Until next time….

Good Luck and Good Job Hunting!!!!

Bureaucratic Shakeup and More Layoffs at Merck?

Posted in BioBusiness

The Twitterverse was buzzing with activity late last week about a possible shakeup at Merck as Roger Perlmutter takes control as its new head of R&D.  As many of you may know, Perlmutter used to work at Merck but left to become Amgen’s Executive VP of R&D when Peter Kim, the now former Head of Merck’s R&D, was hired several years

Kim’s tenure at Merck was rife with missteps, misdirection and drug approval failures. So, when Amgen replaced its CEO and Merck fired Kim, Perlmutter saw an opportunity to return to the fold with Merck now under the tutelage of CEO Ken Frazier (the man who engineered the company’s Vioxx legal strategy).

Fierce Biotech substantiated the Twitter rumors that a major shakeup may be underway at Merck. According to an article published early on Friday, a Merck spokesperson confirmed that Perlmutter is indeed shaking things up and reorganizing Merck’s R&D infrastructure.

The spokesperson said

“I can confirm that some members of management, but not all Franchise leadership, are leaving the company but are working to ensure a smooth transition.”

The departure of several senior leaders was later confirmed by the Wall Street Journal.  While not confirmed, rumors suggested that Rupert Vessey will lead Merck’s Discovery and Early Development programs.

While Merck spends close to $8 billion annually on R&D, its late stage development pipeline is thin and Perlmutter was hired to strengthen it. Changes at the top usually mean that other changes will take place among the rank and file. That said, stay tuned for possible additional layoffs among Merck R&D personnel.

Until next time….

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

AbbVie to Fire Hundreds of Sales Reps

Posted in BioBusiness

AbbVie, the prescription drug spinoff of Abbott Laboratories revealed that it will be laying off several hundred cardiovascular sales reps. The fired workers will be a mix of full time sales personnel and contract workers.  The reason: generic encroachment of its cardiovascular drug franchises. Among those drugs is TriCor, which began facing generic competition in November. TriCor, along with related medication Trilipix, generated $1.1 billion in U.S. sales for AbbVie last year.. Niaspan, an extended-release version of a medicine to raise HDL also will face generic competition this year It sold $911 million for AbbVie in 2012

AbbVie is shifting its focus from primary care, such as drugs that treat a patient’s cholesterol, stroke or diabetes, to so-called specialty medications in areas of unmet health needs

AbbVie is jumping on the elimination of sales personnel bandwagon and joins Eli Lilly which late last week announced that it plans to dismiss hundreds of sales reps tomorrow, a spokesman confirms. The cuts may amount to 30 percent of the companywide sales force in its BioMedicines division, which includes the cardiovascular, neuroscience and Men’s health units Likewise, last Fall, NJ-based Bristol-Myers Squibb layed off 480 sales reps.

Based on the events of the past five years, it may not be a good idea to pursue a career as   a PhD-trained life scientist or a pharma sales rep!  Surprisingly, however, there is a growing need for biopharmaceutical/biotechnology sales reps….go figure!

Until next time…

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

The Beat Goes On: More Layoffs at Life Science Companies

Posted in BioBusiness

Despite assurances that the economy is improving, many life sciences companies are still continuing to downsize.  According to the Pharmalot Blog New Jersey-based Mylan (a generic drug manufacturer)  is laying off nearly 120 people from its specialty offices in Basking Ridge, New Jersey, as part of a reorganization that will consolidate the specialty operation near its Pittsburgh headquarters. The cuts were disclosed in a state filing. A spokeswoman says some employees may relocate. The company is also closing a specialty pharmaceutical plant in Napa, California, later this year which will result in the lost of 270 additional jobs.

Likewise, Massachusetts-based Alkermes  plans to eliminate up to 130 jobs from a plant in Ireland  and, last week, Bristol-Myers Squibb (BMY) revealed that roughly 300 employees will lose their jobs as part of a plan to close the San Diego headquarters occupied by Amylin Pharmaceuticals, which was acquired by BMS last year.

Today, another New Jersey company Unigene that is investigating delivery of proteins and peptide-based drugs announced that it would cut up to 40%of it workforce as it reorganizes and tries to stay in business.

Finally, Swiss pharmaceutical giant Novartis said Tuesday it is consolidating its U.S.-based eye disease research projects in Cambridge, Mass., and closing the Novartis Institutes for BioMedical Research group on its Alcon Labs campus in Fort Worth. About 120 employees in Fort Worth were told Tuesday their jobs will end June 11, The employees will be allowed to apply for jobs in Cambridge as well as for other positions with Alcon. Novartis acquired Alcon, an ophthalmic drug company in 2011 and has been working for the past few years to consolidate all of Novartis’ eye research centers in one location in Fort Worth.  Alcon currently employees about 4,800 people.

While these layoffs are noteworthy, the size of these layoffs pale in comparison to the carnage that took place in the pharmaceutical industry over the past five years. According to Challenger Gray & Christmas, the recruiting and consulting firm more only 3,100 pharmaceutical employees lost their jobs this year. However, Ed Silverman, who writes the Pharmalot Blog mentioned in a post today that “there is industry speculation that Merck will undergo more job cuts.”

Although the industry is still shedding jobs, it is likely that the worst is over and that new job opportunities will emerge in the US and elsewhere over time.

Until next time…

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