Well-known pharmaceutical companies announce staff cuts
Last Update: 2020-06-16
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Adjusting research and development, announcing the layoff of staff Yesterday (June 9), the foreign biopharmaceutical website Biopharma Dive announced that Lingbei, the Danish pharmaceutical company, plans to lay off more than 100 employees as part of a plan to restructure its research and development businessOf the approximately 130 to 160 jobs planned to be eliminated, approximately 100 are from the Danish office in LingbeiA company spokesman confirmed that the positions belonged to the research and development organization; It is understood that Lingbei is engaged in the development and production of drugs in the field of neuroscience, with anti-psychotic drugs Abilify and antidepressantLexapro and other products knownHowever, competition for generic drugs has put pressure on them, prompting mass layoffs and increasing pressure on companies to sell drugsThe company said the job cuts will allow it to continue to strengthen research and development pipelines at all stages of the neuroscience sectorIn fact, lingbei has experienced a series of clinical failures over the past few years, including two first-in-class candidatedrugs that have entered Phase II clinical trials - the metabolic glutamate receptor 4 (mGluR4) regulator foliglurax and the selective sylene hydrolysase monolriglyceriglycease (MGLL) Lu AgAg0646 (ABX-1431), respectively, for the treatment of motor symptoms and Tourette syndrome in patients with Parkinson's diseaseBoth assets stem from two failed acquisitions worth up to $1.5 billionRecently, Lingbei's acquisition and research and development path have been less than satisfactoryIn 2019, Lingbei acquired TherapeuticS, which has a drug discovery platform and a leading candidate in clinical testing of a variety of neurological diseases, for $250 millionIt then quickly followed up with another deal, buying Alder Bio Pharmaceuticals and its migraine drug, eptinezumab, for $2 billionIn February, the U.SFood and Drug Administration (FDA) approved Vyepti's eptinezumab to prevent migraines in adultsIt is important to note, however, that the market for migraine medications is becoming increasingly saturated, and that with the new crown pandemic, the drug must be used under the care of a doctor and may not generate high salesIn Lingbei's 2019 financial report, the company reported revenues of DKK 17 billion, or about $2.6 billionThe company's new drugs, such as Abilify Maintena, Northera and Rexulti, all achieved double-digit growth compared to 2018But this growth will not offset the decline in the old products of LumlingnorthIts former best-selling product, Onfi, a seizure drug, has seen sales fall from nearly DKK 3.2 billion in 2018 to about DKK 1 billion in 2019 Meanwhile, Lingbei's total revenue in 2019 is down 6% from last year Neurologist drugs in the development and return of very difficult, coupled with the impact of the new crown pneumonia, some of the drug sales have been hit, Lingbei personnel adjustment is also reasonable A number of biopharmaceutical companies adjust Lingbei is not the only recent staff to be laid off of the biopharmaceutical company In early May, Orchard Therapeutics, a UK-based pharmaceutical company, reported q1 2020 The report showed a net loss of $50.6 million during the reporting period, and the company attributed the increase in net loss mainly due to higher operating costs To save cash flow, the company said it has laid off about a quarter of its workforce, abandoned construction at its California plant and shifted its clinical focus to high-value, high-demand products The move will save $125 million and extend the company's cash flow until 2022, it said in a statement On April 7th Sage, a biotech company, plans to lay off 340 employees, or about 53 per cent of the company's total Most are engaged in sales promotion and administrative positions, particularly Zulresso-related positions approved by the company for postpartum depression In line with Lingbei's intention, Sage's staff cuts are intended to slash spending and shift resources to experimental treatment for depression conducted by a Massachusetts-based biotech company In the context of the New Crown pandemic, many small and beautiful biopharmaceutical companies, whose research and development and business activities are affected, have maintained their research and development activities and the company's own operations by laying off employees to cut costs and invest in high-value, high-demand clinical research and development There have been research institutions said that in this outbreak, the head of the strong enterprise, large business, strong anti-risk ability, more need to pay attention to small and medium-sized enterprises, the development of the epidemic so that its research and development plan must be adjusted, the development of new drugs research and development tests also have an impact: on the one hand, the hospital does not have enough medical resources to support clinical trials; Start-upprojects may also be forced to be extended to ensure the effectiveness of clinical trials The other side of the abolition is optimization to some extent, the new crown outbreak is only the trigger, accelerating some pharmaceutical companies to carry out strategic adjustments and further optimization of product lines We have extended the timeline to 2018-2019, including Pfizer, Bayer, GSK and other large multinational pharmaceutical companies, to Genentech, Lingbei and other small and medium-sized star biopharmaceutical companies, or Teva such large generic drugs-based multinational enterprises, basically have personnel adjustment news According to the comprehensive statistics, pharmaceutical representatives, staff in the research and development department of new drugs with high failure rate, and personnel of non-core business departments are the first of several categories of people on the verge of cutting staff Since 2018, the cold winter of capital markets, more investors have become more cautious, coupled with the "drug price reduction" globally become the main theme, drug manufacturers' patent expiration and other events pressure, the entire pharmaceutical industry's profit growth is weak; The new crown epidemic to more enterprises brought capital and performance pressure, but also gave them a new impetus for strategic adjustment, is the so-called non-breaking, the future, "staff laid off" or is still the pharmaceutical industry's key words.
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