Lundbeck to cut 600 jobs in Europe to contain costs

Lundbeck to cut 600 jobs in Europe to contain costs

June 14th, 2012 // 1:30 pm @

Danish drugmaker Lundbeck said on Thursday it would cut around 600 jobs in its commercial organisation in Europe to reduce costs and would book restructuring charges of up to 500 million Danish crowns ($84.60 million) as a consequence.

Lundbeck said in a statement the action would be taken to mitigate increased pressure from healthcare reforms, generic competition and uncertainty regarding pricing and reimbursement in Europe.

“The market environment in Europe is changing rapidly at a time when Lundbeck has numerous new products to launch,” Chief executive Ulf Wiinberg said in the statement.

“To ensure a successful transition of our product portfolio in Europe we need a more flexible commercial infrastructure and to maintain cost control,” Wiinberg said.

The restructuring costs are uncertain, Lundbeck said, but added that it was maintaining its previous guidance for 2012 EBITDA and EBIT before restructuring costs

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