Eli Lilly, Facing Stiff Competition On Diabetes Products, Will Cut 3,500 Jobs
The company says the move will save about $500 million annually that it will use partly to support new drug development.
The Wall Street Journal:
Eli Lilly To Cut 8% Of Jobs, Invest More On New Drugs
The drug industry has eliminated tens of thousands of jobs over the past decade. In a sign that the bleeding is far from over, Eli Lilly & Co. announced plans on Thursday to cut roughly 8% of its global workforce. Indianapolis-based Lilly cited a number of issues that are plaguing many drugmakers, including the need to lower costs and raise investment in new drugs ahead of patent expirations that are expected to erode sales of older products. The company said it would eliminate about 3,500 positions globally, including 2,000 in the U.S. (Loftus, 9/7)
Stat:
Lilly Will Cut 3,500 Jobs, Or 8 Percent Of Its Global Workforce, To Revamp
Although specifics were not disclosed, the drug maker indicated that about half of the projected savings would be used to support clinical development of new drugs and finding additional uses for existing medicines, as well as underwriting product launches. ... The move comes as Lilly attempts to reorient itself. Although revenue rose 6 percent last year and net income climbed 13.6 percent, the company faces challenges on several fronts. Although sales of its new Trulicity diabetes drug are rising, Lilly faces stiff competition in the overall diabetes market, which is engendering new scrutiny from federal and state lawmakers concerned about drug pricing. (Silverman, 9/7)
Bloomberg:
Drugmaker Eli Lilly Will Cut 3,500 Jobs
Faced with expiring patents on a number of its medicines, Lilly has been focused on diabetes drugs, which account for three of its 10 top-selling products. Its biggest seller is insulin. But intense competition from a flurry of new treatments in that market has helped drive down prices and profits. ... Lilly has cut thousands of jobs in recent years amid a slide in sales caused by generic rivals. It’s been hurt by research failures, as well. Last year, it eliminated 500 positions following the failure of an experimental Alzheimer’s disease drug. (Hopkins, 9/7)
