Identity Crisis

Is Lundbeck a contract company?

 

Ask anyone on the psychiatry sales force and you will get the same answer.

 

Part of the reason Dan left was due to the new "culture" that has taken shape over the past year. Due to bad deals with Chelsea, Takeda and Otsuka, as well as the loss of Xenazine revenue, Denmark wants to try and recoup the money it has spent. Since Northera sales were not at forecast, they had to try and increase profits by reducing our expenses, bonus payouts, and eliminating jobs, all in an effort to reduce costs. Unfortunately, the field sales team is left holding the bag for their bad deals. Dan couldn't stand watching the Lundbeck he knew, turn into a "big pharma" culture over the past year. Things are going to continue to deteriorate as Sabril is the next revenue stream to be lost next year. Let's hope they learn from the fire drill we experienced with Xenazine and truly have a plan in place. For once, I'd like to see Lundbeck be "proactive" with solutions, instead always just reacting to a crisis. NSM should be interesting in Feb. to see who's gone and who has stayed. Big changes will come next Summer. My suggestion is to be "proactive" about your career path and not "reactive" when there's layoffs next year.

 

To the above poster, good advice. Our new CEO will more than likely, continue to reduce headcount. If your prediction that we will have layoffs by next summer, my guess is that enough folks will leave on their own to get the count down. Sounds like Dan just got sick of the turn to big pharma. We all are sick about the change in our culture. You mentioned the NSM in February, the question is can we afford to waste money on such an event with all of the patent expirations, and flat to declining sales? Lundbeck will call a meeting to discuss a meeting. I have never seen a company more hell bent on face-to-face meetings than Lundbeck!

 

To the above poster..you think that they will wait until next summer for the layoffs - If the sales are as bad as some of the posters are claiming it might be a nice Xmas present

 

I don't think Neurology has to worry. The new Alzheimer's drug will be out in 2017. Another Otsuka/Lundbeck partnership. At least you guys will sell a novel drug in this area. You will also learn what's it's like to be a junior partner with Otsuka. They tell us to play nice in the sandbox- Good luck with that and everyone hang in there- turbulents ahead.

 

You seriously think the ALTZ drug is going to fly---It is a seriously big risk -- how many other companies have failed--

 

I doubt it but Otsuka paid big bucks for a piece of the action. That will be the next big collaboration and probably another Lundbeck contract overbite. Nothing here is a blockbuster just a ballbuster. It will pY the bills until something better comes along or the company folds the tent and lays off most of us.

 

Neurology cuts early 2016. Overlay positions will be terminated. Product mix to change to allow cuts to current sales force and reduction in number of total areas. Psychiatry will also see a small reduction in size. Product mix to change to allow for certain territories to be combined. Changes are necessary because at close of this fiscal year Lunbeck US moves deep into the red because of patent expiration, over forecast of sales and rapid increase of headcount. Leadership has been aware of this situation and have been trying to find ways to avoid cuts but now that 2015 is over there are no other choices. Changes and cuts will take several months to work out and will be implemented early 2016. Lundbeck US in the red will decrease global value on Euro markets and new CEO cannot let that happen. This will not be a major reduction like seen in other companies, however, those affected will feel it sharply and quickly. Severance will be offered but it will not be more than three months pay. More senior leadership will be taking the golden parachute by very early 2016. Good luck all. You deserve to know.

 

Considering Neuro is a 1/4 the size of psych and still pulling in significantly more revenue in spite of patent expirations, this makes no sense. My territory covers multiple states and there are over 10 psych reps covering what 1 Neuro rep is covering in my area. Explain to me how they can carte Blanche cut all overlay postions with so little rep coverage now. I get that some areas need to be re-shifted but if they cut the amount of people you're talking about then there will be less than 100 reps in all of Neuro which is smaller than 4yrs ago when I came here. Nice try fear mongering on info anybody could make up

 

I'm beta. If they want to cut ( and I think there will be another expansion ). It would make sense to train psych on the alz drug. We could cut the sizes of territories and get neuro offices covered

 

WHo knows what is going to happen, but whatever does happen, Lundbeck has got to stop wasting money on useless meetings. The "segmentation" meeting was a complete waste of time. No more meetings, period, unless they are launch meetings, then limit them to 3 days.

MAny psych reps still have great relationships in neuro offices. We could easily, and I mean easily, call on neuros. Gamma was not needed at all, and I now hear talk of expanding it! That's insane! Docs are now tell their Beta reps to pick one to call on them, and they don't want the Gamma rep. Nothing against the Gamma rep, but the relationship is with the Beta rep. Alpha sells only Maintena, and if leadership thinks they sell Brintellix, they are crazy.

Brintellix's flat sales can be thrown back on both companies, especially Takeda. Takeda refuses to be all-in with the drug. Otsuka is not far behind TAkeda with Rex. This place is a mess, and many are looking to leave. Before any layoffs take place, let normal attrition work, and then see what's left.

What you see now at Lundbeck is a perfect example of poor management.

 

If the above is true, and it probably is, it might be management's way of accelerating attrition by leaking it on CP. Who knows. They are blatantly manipulating sales data as well speak, to reduce bonus payout. Gamma was an extremely poor decision. Not making Alpha 50/50 with Maintena and Brintellix, was also a mistake. They have made many others. The sales force has no faith in leadership, especially upper management. Things are deteriorating rapidly.

If you are not ACTIVELY looking to leave, you are a fool.

 

So above has been confirmed realignment is being announce today. Neurology is imploding.

There is no longer a Movement and Epilepsy division and if you live in a major city you may be moved over to psych. Ouch.

Happy Halloween!!!!

 

Is Marvin in the DC area still with us? Hard to believe he is a manager. A token and only reason .

 

If post #30 is correct, neuro is all but finished. It appears they will change territories , get Gamma trained on Rex, and then finalize cuts. We must really owe Takeda/Otsuka big money for not hitting agreed upon metrics for them to hire more reps! I didn't realize that there is no longer a Movement and Epilepsy division. I think many, many folks, both AM's, ASM's and RBD's will be looking for other opportunities, starting now.

 

This poster is spot on. To have ~150 gamma reps that aren't needed Wow!. That's probably a $20 million dollar investment in personnel.

 

What's even worse is keeping Alpha separate, and believing they actually sell Brintellix! I've heard some of the Alpha ASM's only have just a few reps reporting to them! What a waste of money!

In re Gamma, it will go down as a huge financial mistake! Docs are now telling us to pick one rep per drug, and since Beta has all the relationships, they want the Beta rep. That's the purpose of building a relationship! Poor decisions all around.

 

The 1990s and early 2000s was a time in the pharmaceutical industry where "share of voice" was thought to be the answer. It failed. We all know it failed. No one does this anymore. And yet here we are....
Now, if they would be honest to admit it is being done to be contractually compliant with Takeda and not try to convince us that it will increase sales.