Merck KGaA swings axe over Serono operations
pharmafile | April 25, 2012 | News story | Manufacturing and Production, Research and Development, Sales and Marketing | Cladribine, MS, Merck KGaA, Switzerland, job cuts
Merck KGaA will cut around 500 jobs from its pharmaceutical unit in Switzerland, the firm has announced.
The company said it would close the Geneva HQ of its Serono pharmaceuticals unit as it looks to save money.
The firm bought Serono, once Europe’s biggest biotech company, five years ago for over $13 billion.
Merck said it plans to transfer 750 positions to other locations and will cut 500 jobs in Geneva.
Upon completion of the consultation process starting tomorrow, the company intends to start relocations and reductions of its workforce in the second half of 2012, and aims to fully implement the plan in the first half of 2013.
Around 80 positions across three manufacturing sites in Switzerland will also be cut, and the division’s existing manufacturing operations in Coinsins will be relocated to its Aubonne site.
Out of the 750 positions planned for transferal, Merck Serono intends to relocate over 130 related to technical manufacturing operations from Geneva to the Aubonne area in the Canton of Vaud, in order to be close to its manufacturing activities.
Merck intends to maintain its Swiss market operations in Zug, it said.
Stefan Oschmann, executive board member of Merck and responsible for the Merck Serono division, said: “The planned measures for Merck Serono’s operations in Switzerland are needed to ensure our global competitive position in a rapidly changing market and to secure the long-term future of the company.
“Regrettably, these planned measures include the closure of our headquarters in Geneva, which would result in workforce reductions and the redeployment of certain Switzerland-based functions to other Merck locations.”
The cuts are estimated to yield €72.5 million ($95.5 million) in savings, an analyst at Barclays Capital noted to investors.
The cuts are part of a restructuring programme that Merck announced in February, and follow a number of regulatory setbacks for the firm.
This includes its key multiple sclerosis drug cladribine which was expected to reach blockbuster sales, but the drug failed to convince European and US regulators of its worth, and Merck scrapped the pill last year.
Ben Adams
Related Content
Switzerland’s Basel Region Crowned ‘Europe’s Top Destination to Launch a Drug Device Company’, According to Pharmapack Report
Pharmapack Europe: ‘Basel the best location for drug device innovation in Europe thanks to combination …
Sanofi shares results from phase 2 trial for frexalimab in MS treatment
Sanofi has announced new phase 2 trial data for its CD40L monoclonal antibody, frexalimab, for …
Exscientia enters AI drug discovery collaboration with Merck KGaA
Exscientia has announced a new collaboration with Merck KGaA, Darmstadt, Germany, with a focus on …
