In the second half of the year, the wave of layoffs in multinational pharmaceutical companies will continue!

Since the beginning of this year, many pharmaceutical companies around the world have experienced corporate adjustments such as business integration, while at the same time, some companies have also had to lay off employees
.
On Oct.
6, Boston-area Cyclerion Therapeutics announced it would lay off 45 percent of its workforce, a move expected to save Cyclerion $4.
1 million/year
.
According to public information, Cyclerion Therapeutics is a clinical-stage biopharmaceutical company whose main job is to develop treatments for mitochondrial diseases, including MELAS
.
On October 4, OncoSec Medical Incorporated, which focuses on developing intra-tumor immunotherapies, announced that it will lay off 45% of its workforce to reduce operating expenses to prioritize the development of its main pipeline product, TAVO-ep™
.
The company said it will focus on clinical research
on TAVO for metastatic melanoma in the future.
On September 26, Exicure, a nucleic acid drug research and development company in the United States, officially announced a major strategic adjustment plan, which also proposed to reduce the number of employees by about 66%, which is expected to be completed
in the fourth quarter of 2022.
On September 13, U.
S.
pharmaceutical company Rubius Therapeutics announced plans to restructure the company and adjust resources — canceling two of its ongoing trials, laying off 75 percent of its employees and considering selling its manufacturing facility
in Rhode Island.
It is understood that in the planned downsizing list, clinical development, manufacturing and general administrative staff will bear the brunt of it, or about 200 people will lose their jobs
.
.
.
.
.
.
.
In recent years, more and more multinational pharmaceutical companies have begun to play the slogans
of "returning to core business" and "structural adjustment".
Therefore, since 2018, multinational pharmaceutical companies such as Takeda, Bayer, Pfizer, GSK, and Merck have all made "large-scale" adjustments such as splitting, divesting businesses, shutting down pipelines, and even large-scale layoffs, and the resulting wave of layoffs has also been rising
in the industry.
Incomplete statistics show that from January to June this year, 60 pharmaceutical companies have announced layoffs
.
It not only includes former stars such as Blue Bird Biotech, BridgeBio Pharma, and BeyondSpring, but also companies
such as Novartis, Sanofi, Gilead, and Bojian.
From the current point of view, the wave of layoffs in the second half of the year is still continuing
.
Industry analysts believe that from the overall point of view, some of the reasons for layoffs are to eliminate the past sales methods, some are because of the failure of drug research and development pipelines, broken arms to survive to save cash flow, and some are because the company's funds are tight, in order to save operating costs, the focus is turned into advantageous business
.
In addition, there are also people such as AstraZeneca who have been affected by the collection and have had to make frequent structural adjustments in the Chinese market, resulting in layoffs
.
Industry analysts believe that in the torrent of multinational pharmaceutical companies announcing that they are about to optimize and adjust their structures, layoffs have actually just begun
.
In the future, in order to continuously enhance market competitiveness and better respond to changes in the pharmaceutical industry, multinational pharmaceutical companies will continue to have more frequent strategic adjustment periods, and personnel changes, acquisitions, mergers and acquisitions, and business sales will become the norm
.
Disclaimer: Under no circumstances does the information herein or the opinions expressed in this article constitute investment advice
to any person.