Sector News

Bayer may outsource some drug research – works council

October 17, 2018
Life sciences

Bayer’s chief executive is considering farming out certain drug research activities to cut costs amid slower growth at its pharmaceuticals division, the German company’s works council said on Monday.

The works council cited CEO Werner Baumann as he spoke to staff at a gathering at the group’s Leverkusen headquarters on Sept 28. Reuters reported last month that considerable restructuring efforts at drug research and development, including outsourcing, were underway.

“Werner Baumann spoke about the prospect of weaker growth at the pharmaceutical business and mentioned considerations that some expenditures on pharma research could be outsourced,” the works council said in a statement.

A person familiar with the company told Reuters last month that Bayer, which bought Monsanto for $63 billion this year, is considering job cuts and outsourcing as part of a wide-ranging review of drug research and development that will last until at least November.

The savings that Bayer – the inventor of aspirin and maker of Yasmin birth control pills – could make as part of the overhaul would give it financial wiggle room as it competes with larger rivals to buy the right to promising treatments from biotech firms.

Revenues from the drug unit’s top products, blood thinner Xarelto and eye drug Eylea, will peak over the next six years.

A Bayer spokesman said Baumann’s remarks were in reference to plans to intensify external collaborations, which had previously been communicated.

The works council said it wanted more information and demanded wider-ranging job guarantees, beyond a pact that was previously agreed with the company.

By Patricia Weiss

Source: Reuters

comments closed

Related News

April 14, 2024

Bayer taps new North America marketing chief for consumer health division

Life sciences

Avivi joins Bayer fresh off a yearlong stint as chief marketing officer of Advance Auto Parts, which followed about three years spent as marketing chief of another auto parts company, Tenneco. Rounding out her nearly 30-year career in marketing are leadership roles at consumer goods giants Kimberly-Clark and Procter & Gamble.

April 14, 2024

Air Liquide acquires healthcare businesses in Belgium and the Netherlands

Life sciences

Air Liquide S.A. (Paris) is continuing its development with the acquisition of Homecare activities in Belgium and the Netherlands. The two entities acquired in Belgium and the Netherlands support 10,000 patients living with respiratory insufficiency, sleep apnea syndrome or requiring infusion or nutrition treatments.

April 14, 2024

Vertex to acquire Alpine Immune Sciences for $4.9 billion

Life sciences

US-based Vertex Pharmaceuticals has agreed to pay approximately $4.9 billion in cash to acquire Alpine Immune Sciences, a compatriot biotechnology company focused on discovering and developing innovative, protein-based immunotherapies.

How can we help you?

We're easy to reach