2020 pharmaceutical industry life is not good, and pharmaceutical companies lay off workers

"Pharmaceutical Network Industry Dynamics" recently announced that Lundbeck announced that it plans to change and optimize its research and development (R-D) organization to enhance the company's ability to strengthen and advance its product lines at all stages in the field of neuroscience, and may result in the reduction of about 130-160 jobs in its research and development centerThe research and development center at its Danish headquarters will see about 100 jobs will be created, with the rest likely to come from the U.Sresearch and development center.
The plan is understood to be part of Lingbei's "expansion and investment growth strategy", which aims to expand the company's operating space and rebuild its potential pipeline of new drugs for brain diseases, including focusing Lingbei's research and development efforts on promising areas of scientific research, as well as the company's professional biological platform.
In fact, Lingbei is not a single recent announcement of layoffs of biopharmaceutical companies, this year in the pharmaceutical industry development situation is uncertain, many pharmaceutical companies have chosen to reduce spending, adjust research and development strategy, so the full pay cuts, layoffs also occur from time to time.
On April 2, Boston Scientific said it would cut wages for about 36,000 employees worldwide over the next 90 days because of lower revenuesOn April 3rd Boston Science Greater China issued a notice to cut monthly pay by 20 percent for employees at the VP level or above, 10 percent of the monthly salary for employees at the director level (excluding deputy directors), and the cut was tentatively set at three months from May 2020.
In May, UK-based Orchard Therapeutics said it would no longer focus on the development of stem cell gene therapy for rare diseases and would focus on drug development for more common diseases, such as Crohn's diseaseIt has since announced a new strategic plan that will change its clinical focus, close the proposed manufacturing facility and cut 25 per cent of its workforceOrchard expects to save about $125 million by the end of 2021 through the layoffs.
According to the author's understanding, in fact, the above pharmaceutical companies pay cuts and layoffs are mainly due to the impact of the epidemic, so that pharmaceutical companies have to reduce spending, rapid transformation to high-value disease sdevelopmentBut beyond that, there are many reasons behind itAccording to relevant media reports, some time ago a well-known multinational pharmaceutical companies on the abolition of the sales force, the cancellation of the team including 1/3 of the hospital market and 1/5 of the retail marketIt is understood that the company adjusted the sales force, is due to the company's new products did not enter the Chinese market, coupled with fist products in the 4 plus 7 bid, by the policy and market dual impact to make this decision.
In general, because of the impact of the outbreak at the beginning of the year, coupled with domestic band procurement and expansion, health care negotiations and other policies, so that some of the already facing considerable pressure on enterprises have to adjust their business models, optimize or eliminate the relevant business teamsBut it is worth noting that not all companies have chosen the above model of restructuring business, Roche, Mercado, Pfizer, Xi'an Jansen, Suncorp Pharmaceuticals, Johnson and Johnson and other companies have chosen to raise wages, or adjust the bonus policy.
For example, takeda benefit policy provides that all Takeda (China) employees who joined before April 1, 2020, will be paid 20% annual base salary in June 2021, 30% annual base salary in June 2022 and 50% annual base salary in June 2023.
Johnson and Johnson then take the first quarter bonus, no longer in accordance with the sales performance to achieve the payment, the second, third and fourth quarter bonus, according to the corresponding adjustment of the indicators of the current quarter sales performance assessment In addition, employees who complete the quarterly target will receive an additional $5000 in rewards for the current quarter.
In general, the impact of the epidemic on the production and operation of pharmaceutical companies is short-term, it is important that the global drug prices generally depressed background, especially in the Chinese market 4 plus 7 belt procurement and other policies, many pharmaceutical companies have to "big and complete" to "small and refined." In the process, pay cuts and layoffs to adjust research and development strategies will become the norm for a long time.