Jobs under threat in Actelion cost saving
pharmafile | July 12, 2012 | News story | Business Services, Manufacturing and Production, Research and Development, Sales and Marketing | Actelion, R&D, Tracleer, cuts
Swiss speciality pharmaceutical company Actelion has unveiled a new cost saving plan which could include the loss of 260 jobs across the organisation.
The company says the plan will address cost pressures from the strength of the Swiss Franc, increased competition in the US, and European pricing and reimbursement.
Chief executive Jean-Paul Clozel says the company is also restructuring its R&D to help it focus on developing further orphan and speciality franchises.
“In order to take full advantage of the growth opportunities ahead of us, we must take decisive action now. We will maintain the earning power of our business thereby balancing long-term growth opportunities with short-term profitability enhancement.”
The company has enjoyed huge growth in recent years, largely thanks to its pulmonary hypertension treatment Tracleer. But the drug’s success, has raised investor expectations of the firm, and it must now secure further growth just as Tracleer’s growth begins to plateau, and edge closer to patent expiry in 2015.
The refocusing of Actelion’s R&D efforts is expected to result in lower and more targeted R&D spending. Following a portfolio review, those projects which are not in alignment with this strategy will be either stopped, or prepared for partnership or out-licensing.
Cost savings will start to take effect in the latter part of 2012 and accelerate in 2013. The refocusing of the pipeline will require a realignment of the organisation.
The cost saving initiative is expected to result in a reduction of up to 135 positions in R&D and in administration. Approximately 115 positions could be impacted in Allschwil, Switzerland where these functions are predominantly located. Actelion will continue to be headquartered in Switzerland.
It said it is committed to minimising the number of potential redundancies through natural attrition, early retirements and other such measures and has initiated a consultation process with employee representatives in Allschwil.
Upon completion of the consultation process, Actelion intends to implement a social plan and conclude the initiative before the end of 2012. Consequently a one-off restructuring charge will be included in the 2012 financial statements.
Andrew McConaghie
Related Content
ANGLE’s Parsortix system used in new cancer biology research
ANGLE has announced three new peer-reviewed publications demonstrating the use of its Parsortix circulating tumour …
Moderna expands use of AI-ready R&D platform
Moderna has expanded its partnership with Benchling, a cloud-based research platform, to support its broader …
Galimedix completes key stage of clinical trial for treatment targeting eye and brain diseases
Clinical biotech, Galimedix Therapeutics, has announced the completion of a single ascending dose (SAD) part …
