Sector News

Categories

Borderless Insights

Image
Negotiating terms with a new employer
Image
Borderless Executive Search welcomes New Partner, Agnieszka Ogonowska
Image
Navigating the Challenges of Expatriation: Insights from Dr. Catherine Koini and Andrew Kris

J&J Plans for the Future by Trimming Pension Benefits for New Hires

September 15, 2014
Life sciences
In its latest step to cut costs, Johnson & Johnson JNJ +0.03% will reduce pension benefits that are offered to employees who are hired – or rehired – after Jan. 1, according to an internal memo.
 
The changes, which do not apply to existing employees or retirees, were not detailed, but reflect the way the “benefit landscape has continued to evolve in recent years,” as well as “emerging trends” in employee career patterns and practices at competitors, writes Peter Fasolo, the J&J JJSF -1.22% worldwide vice president for human resources. A J&J spokeswoman confirms the memo was sent to employees.
 
“The changes will more closely align with benefits offered by our competitors and maintain a retirement program that’s above average among our peer companies,” he writes. “… More importantly, it will continue to support our efforts to attract and retain talent to drive innovation and growth across our family of companies, helping us manage for the long term.”
 
The move comes even as J&J, which sells a wide array of prescription drugs, medical devices and over-the-counter health products, continues to improve its financial performance. Sales in the second quarter this year, for instance, rose 9%, while earnings climbed more than 12%.
 
The healthcare giant has been attempting something of a turnaround, despite sluggish device sales and efforts to revive its over-the-counter business, which was plagued in recent years with embarrassing manufacturing gaffes that led to numerous product recalls.
 
The pharmaceuticals business, however, has been a stand out. In the second quarter, prescription drug revenue jumped 21%, thanks to sales of treatments for prostate cancer and psoriasis, among other. Over the past year, J&J stock has risen nearly 20%.
 
Like many other companies, though, J&J continues to cut costs. Earlier this year, the DePuy Synthes medical device unit eliminated all travel – except for sales reps – for the rest of this year in hopes of lowering those costs by 25% and meeting 2014 financial goals.
 
By Ed Silverman
 
Source: Pharmalot

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

Read more
January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

Read more
January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

Read more
More news

How can we help you?

We're easy to reach