Approaching the end of the year, the pharmaceutical industry has reappeared in a wave of layoffs!

【Pharmaceutical Network Industry News】Approaching the end of the year, the pharmaceutical industry is in an "eventful autumn", from November, the seventh batch of national procurement of drugs will be landed in various places, this time the national procurement of 60 kinds of drugs has been successfully purchased, and the average price of the selected drugs is reduced by 48%.

In addition, a new round of medical insurance negotiations will also begin
.
Under the background of normalization of centralized procurement and medical insurance fee control, many pharmaceutical companies have accelerated the pace
of personnel adjustment.
At the end of October, Dutch medical device manufacturer Philips announced urgent actions to improve performance, including an immediate layoff of around 4,000 employees worldwide and an expected
charge of about 300 million euros in the coming quarters.
Based on Philips' total workforce of 78,000 last year, the layoffs accounted for more than
5% of the company's total workforce.
According to Philips' financial report for the third quarter of 2022, its operating income loss was 10.
699 billion yuan, and in order to reduce operating expenses, the layoff was also reasonable
.
On October 25, it was reported that the hepatitis C team of a foreign enterprise would be disbanded at the end of the year and the entire product line
would be withdrawn.
Some analysts said that the product line of the multinational pharmaceutical company is a new hepatitis C drug and is within the scope of the medical insurance directory, but due to the difficulty of the market, the pharmaceutical company has to adjust
.
On October 23, Sandoz was also reported to have laid off about 40 employees, including 1 regional manager and 3 regional managers, who will leave
at the end of November.
The reasons for the layoffs are mainly related to
collective procurement.
On October 23, it was reported that GreenLight Biosciences plans to integrate "platform teams" into their respective teams for human health and plant health, which will be accompanied by a 25% staff cut
.
The reduction in headcount is expected to result in cost savings
of approximately $13 million by 2023.
On October 21, when media reported that Johnson & Johnson would lay off more than 60 jobs in its New York office, Johnson & Johnson reported "factory layoffs" to the New York WARN system, noting that 64 employees
would be laid off from January 13 to January 26, 2023.
The reasons for the layoffs are related to
"economic" factors.
On October 19, media reported that Novartis announced that it would lay off up to 400 employees
at its Global Service Centre in Elm Park, Dublin, by 2024.
Novartis currently has 1,000 employees in Ireland and will cut about half of its jobs
this time.
On October 6, Boston-area Cyclerion Therapeutics announced that it would cut its workforce by 45 percent and reduce its workforce to about 16, which is expected to save Cyclerion $4.
1 million annually and shift its focus to mitochondrial disease
。 On October 4, Onco Sec Medical Incorporated, a clinical-stage biotechnology company focused on developing intra-oncology immunotherapies, announced that it will cut its workforce by 45% to prioritize the development of its main pipeline product, TAVO (TAVO-ep™),
in order to reduce operating expenses 。 In early October, Exicure, Inc.
, a biotechnology company in the clinical research and development stage, announced plans to restructure the company and adjust resources, including a reduction of about 66%, which is expected to be completed in the fourth quarter of 2022, and to stop all research and development activities, including the suspension of all collaborative projects
.
Not only multinational pharmaceutical companies, but also domestic pharmaceutical companies have recently reported layoffs, which may be related to the sharp decline in market demand for the company's core products, resulting in a decline in
corporate performance.
By the end of 2021, the number of sales personnel of the pharmaceutical company decreased by more than
600 compared with the end of 2020.
From the above reasons for the layoffs of pharmaceutical companies, many pharmaceutical companies have laid off employees related to collective procurement, and the arrival of centralized procurement seems to have brought great challenges to the entire pharmaceutical industry, and in order to cope with the challenges, it is expected that the relevant adjustments of pharmaceutical companies will continue
in the future.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.