Since October, a number of multinational pharmaceutical companies have announced layoffs

【Pharmaceutical Network Industry News】With the intensification of competition in the global pharmaceutical market, pharmaceutical companies have frequently taken actions to cope with challenges, and at the same time, they have also brought a large number of personnel changes
.
Recently, the layoffs of pharmaceutical companies have been heating up
.
Since October, a number of multinational pharmaceutical companies have announced layoffs
.
On October 6, Cyclerion Therapeutics announced it would lay off 45 percent of its workforce, which is expected to save Cyclerion $4.
1 million a year, and the company shifted its focus to mitochondrial diseases
.
In addition to cutting the number of employees to about 16, executives also plan to seek cooperation with
some pipeline projects focusing on kidney and neuropsychiatric diseases.
It is understood that Cyclerion Therapeutics is a clinical-stage biopharmaceutical company dedicated to the development of treatments for mitochondrial diseases, including MELAS
.
Cyclerion's lead molecule is CY6463, a new, first-of-its-the-cns-breakthrough sGC stimulant that modulates a key node
in the basic signal network.
On October 4, OncoSec, which focuses on developing intra-tumor immunotherapy, 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™
.
TAVO uses electroporation technology to generate controlled local expression of IL-12 in the tumor microenvironment, enabling the immune system to target and attack tumors
throughout the body.
Incomplete statistics show that in the first half of this year, at least more than 50 multinational pharmaceutical companies have laid off employees
.
From the perspective of the reasons for layoffs, some are to eliminate the past sales methods, some are because the drug research and development pipeline failed, the broken arm survived 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, so the layoff decision
is made.
In addition, there are multinational pharmaceutical companies such as AstraZeneca that have been affected by the collection and have to accelerate frequent structural adjustments
in the Chinese market.
In addition to multinational pharmaceutical companies, recent domestic personnel changes are also more frequent
.
According to incomplete statistics, a total of 18 executives were newly appointed and 12 executives resigned
.
Among them, a number of MNC China leaders took up new positions, local biotech continued to introduce overseas executives, and executives of traditional pharmaceutical companies were promoted, retired, fled, and dismissed
.
On the whole, most pharmaceutical companies have taken measures such as personnel reduction, suspension of some clinical trials, and sale of factories, mainly with the purpose of maintaining the technical development and research capabilities
of major projects under the premise of maintaining the operation of enterprises.
In this regard, industry analysts believe that when the capital flow of pharmaceutical companies is tight, not only administrative personnel, but also development and manufacturing personnel under the once huge and miscellaneous pipelines are also facing the risk
of leaving.
However, it is worth noting that layoffs are a choice for pharmaceutical companies to increase profits, not a
must.
The growth of pharmaceutical companies' profits still needs to be carried out
by increasing sales revenue, improving gross profits, reducing costs, and improving net profits.
Therefore, the industry expects that in the future, while pharmaceutical companies will reduce their personnel, the R&D personnel and medical representatives who meet the needs of professional talents for enterprise development will also become more and more exuberant
.
Disclaimer: Under no circumstances does the information herein or the opinions expressed in this article constitute investment advice
to any person.