These 27 markets, comprising countries across Asia, Europe and South America, together contributed some 12% of Lundbeck’s earnings in 2024.
As Lundback enacts a major business overhaul across its European and international operations, more than 600 employees of the Danish company will be left without jobs.
In a news release on Tuesday, Lundback announced it would be pulling out of 27 markets and switching to what it called a “partnership model” in these areas. The company will farm out its commercial assets in these markets to three regional partners.
In Asia, Lundbeck will partner will Zuellig Pharma, while Middle East and North Africa regions will be handed off to NewBridge Pharmaceuticals. Swixx Group will be in charge of European and South American territories. Lundbeck expects to complete its transition into this partnership scheme by Dec. 1.
Lunbeck has 602 employees across these 27 territories. The pharma expects that “the majority” of these affected staff could “get a new job with the local partners,” as per the company’s announcement. According to its website, Lundbeck has around 5,700 employees total worldwide, meaning that Tuesday’s restructuring could represent a more than 10% reduction in headcount.
The decision to retreat from nearly 30 markets—which together accounted for 12% of Lundbeck’s revenue in 2024, according to its announcement—will allow the company to free up money for “targeted investments in support of our goal of building neuro-rare and neuro-specialty disease franchises.” The partnership model will also lower Lundbeck’s “operational complexity” and enable greater focus on “highest-growth opportunities.”
The Danish pharma expects to absorb 390 million Danish Krone—or roughly $61 million—in one-time costs associated with the restructuring, though it anticipates “no impact” on its 2025 financial guidelines.
Lundbeck will retain its commercial presence in more than 20 countries, which account for the bulk of its earnings. These include the U.S., the U.K., China, Japan, Canada and Korea.
In the first half of 2025, Lundbeck reported a 14% increase in revenues to 12.25 billion Danish Krone, or around $1.92 billion. The U.S. accounted for the vast majority of the company’s earnings, contributing roughly $1 billion in sales. Lundbeck’s biggest product is the Otsuka-partnered Rexulti, for treatment of agitation associated with dementia in Alzheimer’s disease. The drug surged 28% year-on-year to make about $517 million.
