Lundbeck to slash 600 jobs in Europe
pharmafile | June 15, 2012 | News story | Sales and Marketing | Cipralex, Europe, Lundbeck, austerity, cuts
Lundbeck will cut 600 jobs from its operations in Europe as its Cipralex parent expiry continues to erode revenue.
The firm said that the cuts will only be coming from Europe, and it would keep investing in the US and emerging markets, which are better growth drivers.
Lundbeck said it would “do its utmost to manage the cuts in a respectful way,” and has started a consultation process regarding the staff reductions with the works councils in the most affected markets.
Lundbeck still expects to deliver an EBITDA of DKK 3.0-3.5 billion and an EBIT of DKK 2.0-2.5 billion in 2012 before costs connected to the restructuring plans take hold. These costs are currently estimated to be around DKK 500 million ($85 million) for 2012, although this could change.
The firm said that its aim was to “establish a more flexible commercial infrastructure” and to control costs with these cuts. It would also ensure the successful launch of new products in Europe in the future, the company added.
Lundbeck has been hit the loss of its key antidepressant Cipralex and has also been affected by the European debt crisis, which has seen governments squeeze their drugs bill.
“The market environment in Europe is changing rapidly at a time when Lundbeck has numerous new products to launch,” said Ulf Wiinberg, chief executive of Lundbeck.
“To ensure a successful transition of our product portfolio in Europe we need a more flexible commercial infrastructure and to maintain cost control,” he added.
Ben Adams
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