BI to cut up to 600 jobs in Germany
- BI’s sales for the first half of 2014 are down 8% year over year, to $8.27 billion.
- Despite the decrease in sales, BI is optimistic about long-term prospects based on a number of planned product launches, including drugs for idiopathic pulmonary fibrosis (IPF) and leukemia, as well as the potentially game-changing biosimilar Lantus (insulin glargine).
- BI’s goal is to cut jobs without lay-offs by relying on natural attrition, already-agreed upon retirements, and expiration of temporary contracts.
BI is cutting costs in response to changes in the market environment in which it operates, as well as shifts in currency valuations. One of the major factors driving the company's need to rein in costs is the impact of healthcare reform and associated cost-containment efforts in the U.S.
On the upside, BI will soon be launching nintedanib for IPF and volasertib for leukemia. Despite the fact that there is a 30-month stay on the launch of Basaglar (biosimilar Lantus), which is being co-marketed with Lilly, the upside potential is significant. Lantus is a $7.6 billion drug based on 2013 sales.
Basaglar was approved by the European Medicines Agency on June 27 and by the FDA on August 20.
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