Biotech Values

[DewDiligence]

This was one of the worst kept secrets in pharma…

http://online.wsj.com/article/SB10001424052970203716204577013930254809686.html

›Sanofi Cuts Jobs, Consolidates U.S. Facilities

NOVEMBER 2, 2011, 1:04 P.M. ET
By PETER LOFTUS

Drug maker Sanofi SA will eliminate jobs in its sales and research-and-development organizations and will consolidate North American facilities in a restructuring aimed partly at reducing costs in the face of drug-patent expirations and economic weakness.

The France-based company, which employs about 18,000 in North America, didn't specify how many jobs would be cut. The company informed employees of the moves in meetings Wednesday.

"There will be some impact on jobs," said Sanofi spokesman Jack Cox.

As with other drug makers, Sanofi has already reduced its work force in recent years in response to revenue pressures such as patent expirations. The company soon will lose U.S. market exclusivity for blood-thinner product Plavix and blood-pressure medication Avapro, both of which are co-marketed with Bristol-Myers Squibb Co. [I think it’s reasonable to surmise that SNY will never again have a drug as big as Plavix.]

Sanofi cited additional factors in the planned job cuts, including the integration of newly acquired Genzyme, generic competition, regulatory and payer pressures, a depressed economy, government deficit-reduction efforts and health-care reform. [What? No blame on Greece?]

Sanofi said it is consolidating its North American drug-discovery and early-development operations in Boston, where its presence was bolstered by the acquisition of Genzyme. At the same time, it is creating a new drug-development center at its North American headquarters in Bridgewater, N.J.

As a result, Sanofi will close an existing R&D site in Bridgewater in the fourth quarter of 2012. The company said it is still evaluating how many of these jobs will move to other facilities, so it is too early to specify the number of layoffs.

Also, Sanofi said it will reduce its U.S. sales force primarily among representatives who promote cardiovascular and oncology products. Sanofi will offer a voluntary separation program for sales reps, and existing vacancies may create opportunities to move reps into other areas of the business, it said.‹