Boehringer Ingelheim Corporation Plans To Cut Up To 600 Jobs
September 23, 2014
By Mark Terry, BioSpace.com Breaking News Staff
Boehringer Ingelheim announced today that it plans to cut up to 600 jobs in Germany, as it tried to reduce business costs in that country by 15 percent or $580 million (U.S.).
The cuts are expected to occur by the end of 2016.
Boehringer Ingelheim, headquartered in Ingelheim, Germany, operates worldwide with 142 affiliates and employs more than 47,400 people. In 2013 the company reported net sales of over 14 billion euros, down 4 percent from 14.7 billion euros in 2012.
The company markets healthcare drugs and therapeutics in the areas of respiratory disease, cardiovascular disease, Parkinson’s, HIV, thromboembolic disease, cerebrovascular disease, oncology, diabetes and hepatitis. Its best known products are Flomax, Pradaxa, Spiriva and Dulcolax.
In August Boehringer Ingelheim announced plans to cut its workforce in order to free up cash for investments. This was in response to six-month earnings, which reported a 3 percent drop in sales in the U.S. and approximately 8 percent in euros.
The company had also recently settled a lawsuit with more than 4,000 people over sides effects from the company’s blood thinner therapeutics Pradaxa. More than 540 patients died from serious side effects of the drug, including GI, rectal and brain bleeding. Boehringer Ingelheim paid $650 million to settle all 4,000 state and federal lawsuits.
The company said the most recent round of cuts are related to healthcare budget shrinkage in the U.S. and tighter reimbursement conditions in Germany. In May the company sold off a Ohio-based facility, Ben Venue Laboratories, which had reported quality concerns. The plans to close that facility resulted in the loss of more than 1,000 jobs. The company sold the facility to Hikma Pharmaceuticals for approximately $300 million.
Despite the consolidation, Boehringer Ingelheim announced in early August that two new products had been approved by the FDA for use in the U.S Striverdi was approved for the treatment of chronic obstructive pulmonary disease (COPD), chronic bronchitis and/or emphysema. Jardiance was approved for adults with type 2 diabetes to help improve blood glucose levels. Company chair Andreas Barner also indicated the company intends to launch 10 new products over the next two years. The workforce contractions will free up cash to focus on research and development and new drug launches.