Lundbeck to make massive savings round

Pharmaceutical company cutting 1,000 jobs

After a weaker than expected second quarter, the pharmaceutical company Lundbeck has set itself a target of saving 3 billion kroner by 2017. To achieve this it intends to cut 1,000 jobs.

Lundbeck’s new chief executive, Kåre Schultz, presented the company’s second quarter results this morning.

“Together with my management team, I believe these changes will drive sustained value for all our stakeholders,” said Schultz.

“We are aware these decisions will affect many of our employees, and we will make an effort to support these people when we implement the changes.”

Cuts across the board
The cuts will occur at the company’s Valby headquarters and in “other markets”, according to the release. Lundbeck currently has 6,000 employees in 57 countries.

All the functions of the headquarters will be restructured, along with administration cuts at corporate subsidiaries. Lundbeck will expand its recently established service centre in Krakow, Poland.

The company lost nearly 4 billion kroner due to a worse than expected second quarter.

One reason for the poor performance is that the company’s European patents on two of its top sellers have expired, leaving the door open for less expensive generic versions to hit the market.

READ MORE: Lundbeck fined 700mn kr for blocking generic drugs

Lundbeck’s new products have also under-performed.

Schultz said the savings will help the company get back into the black next year.