Daiichi Sankyo

Daiichi sheds more US jobs as generic losses take their toll

pharmafile | October 20, 2015 | News story | |  Daiichi, Daiichi Sankyo, generic competition, generics, job losses, patent cliff, patents, redundancies 

The Japan-based drugmaker Daiichi Sankyo is to cut up to 1,200 jobs – or about half its workforce – in the US.

It follows Daiichi’s plans to lay off 16% of its workforce in the States, reported by Pharmafile in March, in a series of redundancies at its base in Parsippany, New Jersey.

In March Daiichi told Pharmafile the firms had decided to cut jobs in response to growing competition from generics over the next two of its biggest products: blood pressure medicine Benicar (olmesartan), which accounted for 27% of Daiichi’s turnover, with $2.6 billion in sales in 2014, and cholesterol drug Welchol (colesevelam).

Now the Japanese firm says it will cut a further 1,000 to 1,200 jobs, “through voluntary and involuntary displacements as well as eliminating open positions.” The eliminated jobs will come from the US commercial home office in Parsippany, New Jersey, as well as field-based sales and other positions throughout the country. But it added the reorganisation will not affect its R&D functions in Edison, New Jersey, or its packaging plant in Bethlehem, Pennsylvania.

“As we face the loss of exclusivity in the coming year of our largest product, we also look ahead to great opportunities with our emerging portfolio in cardiology, oncology, fibromyalgia and pain relief,” said Ken Keller, president, of US commercial at Daiichi Sankyo. “This calls for us to restructure our organisation into a smaller, highly targeted and efficient operating model, with a greater emphasis on customer-facing roles.”

He continues: “Daiichi Sankyo recognises the macro changes occurring in the US healthcare system that place a greater emphasis on managing the needs of patients with more complex healthcare needs. As a specialty company, we will be positioned to meet those needs and invest in advancing technologies that will make a significant difference in patient lives.

“While this initiative will place us on the path toward long-term success, it does require us to make some difficult decisions. We are grateful for the contributions of all of our employees and are committed to making this process as easy and streamlined as possible for them through outplacement services and other support.” 

Lilian Anekwe

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