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

December 3, 2022

Sanofi moves into swanky new Paris HQ designed around hybrid work and sustainability

Life sciences

Monday, the French pharma giant officially moved into its new global home base in Paris, dubbed La Maison Sanofi. The 9,000-square-meter (about 96,875-square-foot) facility comprises two historic buildings and will host around 500 employees, the company explained in a release.

December 3, 2022

As CEO Schultz eyes retirement, Teva taps former Sandoz head Francis as its next leader

Life sciences

On the first day of the new year, former Sandoz chief Richard Francis will take the reins from Schultz, who is hanging up his CEO hat to retire on Dec. 31, Teva said Monday. The news comes a little more than two weeks after Teva publicly said it was looking for Schultz’s replacement.

December 3, 2022

General Electric sets healthcare division spinoff plans

Life sciences

General Electric Co. set the terms for the spinoff of its healthcare division, putting an initial value of roughly $31 billion on the soon-to-be-public company. The Boston conglomerate plans to split into three separate public companies by early 2024. Following the healthcare spinoff, it plans to separate its aerospace business from its power and renewable-energy units.