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Pfizer takes the ax to US sales reps amid virtual push
by Ben Adams |
Jan 12, 2022 6:22am

Pfizer is culling hundreds of sales reps in the U.S. as the company shifts into digital drive amid a pandemic veering away in-person meetings.

Pfizer and partner BioNTech are set to make around $40 billion in COVID vaccines sales for the year and more in 2022, with new antiviral Paxlovid also set to help bring in yet more billions in the future.

But while flush with cash, this doesn’t mean the New York-based Big Pharma will be spending money where it isn’t needed.

“There will be some changes to our workforce to ensure we have the right expertise and resources in place to meet our evolving needs,” which includes the move to digital and away from sales reps in the field. The story was first covered by Reuters.

Fierce Pharma Marketing understands that Pfizer is eliminating a few hundred sales positions, though it is adding about half that number of positions back into the company in new areas to help facilitate the kinds of engagement HCPs are telling the company they want more of in the future.

This comes in the same week that Pfizer CEO Albert Bourla, Ph.D., spoke at the J.P. Morgan Healthcare Conference 2022 about the company's move to virtual. “Part of our development efforts in COVID were very successful because of the digitization that we’ve had in our operation and that also will continue play,” he said.

He added that the go-to-market approach is “very different” given the way the company and doctors can access information about the medicines “through the digital route rather than through field forces,” which is the way it used to control that information.

Pfizer is not alone in culling sales reps; a year ago, Amgen also swung the ax, culling 500 U.S. jobs, the majority of which were also sales reps, and, again, this bloodletting came as a result of the pandemic pushing their roles into a more virtual platform.

But there have been some warning signs from healthcare surveys, notably from Accenture and Indegene, that the drive to digital is leading to doctors becoming "overwhelmed, spammed and fatigued" by pharma marketers pushing drug promotions and failing to tailor information as needed.

The survey from Indegene noted that pharma needed to get serious about training "digitally savvy reps" in this new age and not simply "spam" healthcare professionals.
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Bloodletting at Zymeworks as new CEO axes half of senior leaders, plans 25% reduction in headcount
by Nick Paul Taylor |

Zymeworks expects its cash to last “through at least late 2022.”

Kenneth Galbraith has made an immediate mark on Zymeworks. Days after taking up the CEO position, Galbraith has axed half the senior management team and disclosed plans to cut total headcount by 25%.

Zymeworks disclosed the CEO transition Jan. 5, at which time it expected Galbraith to take up his new post by the start of February. Galbraith arrived well ahead of schedule and acted fast, assuming the role Jan. 15 and culling colleagues in his first week in the job.

The cull leaves Zymeworks with a new-look, slimmed-down management team. Tony Polverino, Ph.D., is among the high-profile casualties of the changes. Polverino joined Zymeworks from Kite Pharma in 2018 to work as chief scientific officer and executive vice president of early development. Zymeworks hired Polverino to set up and drive its R&D strategy and to manage the transition of drug candidates into early clinical development.

With its cash reserves running down, Zymeworks has now decided it can do without those skills, pushing Polverino out of the door along with its former chief people officer, chief commercial officer and half the senior leadership team. The exits are a precursor to a wider bloodletting that will see Zymeworks reduce its headcount by 25% by the end of the year.

Zymeworks had 455 full-time employees as of the end of September, suggesting 100 people or so will lose their jobs. The cuts follow a period of fast expansion. Zymeworks ended 2020 with 352 full-time employees. Returning back toward that size could help Zymeworks cut its cash burn, which topped $50 million a quarter in recent results, and thereby eke out the $250 million it had in the bank at the end of last year.

The remaining money, which Zymeworks expects to last “through at least late 2022,” will fund work on HER2-targeted bispecific antibody zanidatamab, which is in pivotal trials in biliary tract and esophageal cancers, and early-phase bispecific HER2‑targeted antibody-drug conjugate ZW49.

Responsibility for taking the assets forward will fall on a new-look leadership team. The changes leave Neil Josephson, M.D., who was promoted to chief medical officer last year, and Kaycia Wilde, Ph.D., VP of clinical operations, among the key people on the development side. Zymeworks plans to add a head of R&D to the team in the future.
 






Feeling Blue: bluebird bio Cuts Staff by 30%, Prepares for FDA Decision
Published: Apr 05, 2022 By Jazmine Colatriano, M.S.

Following the ongoing trend in the pharmaceutical industry, bluebird bio has orchestrated a restructuring that includes saving financially and cutting staff. The restructuring is designed to prolong the company’s budget as it awaits decisions from the U.S. Food and Drug Administration (FDA).

Approximately 30% of bluebird’s staff will be let go in an effort to reduce operational costs to under $340 million by the end of 2022. The savings will prolong the company’s operation, as mentioned by Andrew Obenshain, CEO of bluebird. “Today, we are taking decisive action to extend our cash runway, and put bluebird in a stronger position to execute on our strategic priorities and ultimately bring potentially curative gene therapies to patients and their families,” Obenshain said. “The decision to reduce our workforce in support of a more focused set of priorities was not taken lightly, and we are grateful to every bluebird who has helped to progress the field of gene therapy and championed our mission.”

In total, operational and staff cuts are expected to free up $160 million over 2022 and 2023. The company has filed two Biologics Licensing Applications (BLA) with the FDA. These two possibilities represent the lifeline of bluebird, and the future of the company will be determined in part by these decisions.
 






In major shake-up, Novartis combines pharma and oncology units, leaving 3 top execs without jobs
By Angus Liu Apr 4, 2022 04:23am
Three C-level executives are leaving Novartis as a result of restructuring, including its oncology business head and chief medical officer. (Novartis)
Novartis CEO Vas Narasimhan is giving the Swiss pharma a huge makeover ahead of a possible spinoff of generics unit Sandoz, pushing out three C-level executives and preparing for layoffs.

Novartis will no longer have oncology and pharmaceuticals as two separate commercial departments. Instead, all Novartis novel drugs will merge into one innovative medicines unit to be managed under U.S. and international markets organizations, the company said Monday.

Simultaneously, Novartis is creating a new position in charge of corporate strategy, R&D portfolio strategy and business development, carving out some responsibilities from the head of drug development. The new role will be called the Novartis chief strategy and growth officer.

As a result, Susanne Schaffert, Ph.D., president of Novartis Oncology, is left without a job. Marie-France Tschudin, Schaffert’s counterpart on the pharmaceuticals side, will transition to head up international operations and also bear the title of chief commercial officer. As for the U.S. market, Victor Bulto, who was the U.S. head of pharmaceuticals, has been elevated to lead all U.S. commercialization across therapeutic areas.

The combination will trigger some job cuts, a Novartis spokesperson told Fierce Pharma, but it’s too early to speculate which roles and how many.
 






6,000 layoffs worldwide!Sanofi to continue layoffs in 2022
2022-04-07 03:28 HKT
New year and new atmosphere, always start with the flag.

On February 4, the US pharmaceutical industry website Fierce Pharma reported that in the recent quarterly investor conference call, Sanofi said that it will continue to implement the layoff plan in 2022, and it is expected to lay off a total of 6,000 people worldwide throughout the year.

On the conference call, Sanofi CFO Jean-Baptiste re-emphasized the company's goal: simplicity.

Sanofi hopes to reduce labor costs through layoffs. By the end of 2021, the company had a total of 96,000 employees , a decrease of about 5% from 2020.

Layoffs to save money

Sanofi's cost-saving plan began in 2019, when CEO Paul Hudson, a former pharmaceutical representative, determined that it would save 2 billion euros in costs by 2022.

In 2018, Sanofi's global net sales were 34.463 billion euros, a year-on-year increase of only about 2.5%. Affected by the expiration of patents, Sanofi's diabetes and cardiovascular business revenue fell by 13.8% year-on-year; the growth of the vaccine segment of the fortune business was only about 2.4%, and the results were not outstanding.

In order to achieve the goal, Sanofi has tried many methods:

Administratively, Sanofi began to replace face-to-face meetings with video conferences to reduce travel costs; in management, it gave employees more decision-making power, saving money for consultants; in human resources, it invested in the use of e-learning platforms, The cost of training employees can also be reduced considerably. Of course, the best way is to lay off people.

In 2018, Sanofi's total number of employees peaked at about 105,000 people, and has since continued to reduce the number of employees.
 






Zosano Pharma cuts staff 31%, the latest layoffs in a wave of biotech belt-tightening

Regulatory setbacks for a new migraine treatment have led Zosano Pharma to restructure, laying off about 31% of its staff. Zosano is one of several biotechs that announced cost-saving measures this week.
 






PhIII failure triggers layoffs, spending cuts and warning of 'dissolution' for single-minded biotech

When you are staking your whole business on a make-or-break Phase III trial, failure can be devastating.

Just ask Neurana Pharmaceuticals.

The little San Diego biotech had enrolled 1,004 patients who suffer from pain due to acute back muscle spasms in a Phase III study of its lead drug, tolperisone, as the final leg of an effort to introduce to the US a skeletal muscle relaxant that’s been used in Europe since the 1960s.

But Neurana revealed late Tuesday that the study, dubbed RESUME-1, failed to meet primary and key secondary endpoints.

Across all three dose groups (50mg, 100mg, 200mg), patients given tolperisone three times per day for 14 days weren’t any less likely than those on placebo to report pain “right now” at Day 14, as measured by the Numerical Rating Scale — or, in the company’s words, “did not demonstrate significance.”

That was the first domino to fall. Within the same press release, Neurana went on to say that its board of directors “has decided to explore all strategic alternatives and has reduced employee headcount and spending.”

And execs didn’t mince words about the bleak future they face.

If no strategic alternatives are identified, the company will begin a plan of dissolution.
 






Exclusive: Pfizer to cut U.S. sales staff as meetings with healthcare providers move to virtual
By Michael Erman
Jan 11 (Reuters) - Pfizer Inc (PFE.N) said on Tuesday it is reducing its U.S. sales staff as it expects doctors and other healthcare providers to want fewer face-to-face interactions with sales people after the COVID-19 pandemic ends.

The move comes as the company is expected to announce more than $80 billion in revenue in 2021 on strong sales of the COVID-19 vaccine it developed with Germany's BioNTech SE . That would be record sales for a pharmaceutical company, according to Pfizer Chief Executive Albert Bourla.

"We are evolving into a more focused and innovative biopharma company, and evolving the way we engage with healthcare professionals in an increasingly digital world," the company said in a statement.

"There will be some changes to our workforce to ensure we have the right expertise and resources in place to meet our evolving needs."

The company did not specify how many sales jobs it was cutting.T

A source familiar with the matter said Pfizer was eliminating a few hundred positions. The company also plans to create new positions in different areas for around half those jobs, the source said.

According to a document seen by Reuters, Pfizer believes that doctors and other healthcare professionals will want around half of their interactions with drug companies to be remote in the future.

Pfizer's revenue is expected to climb even higher this year and is projected to top $100 billion, according to analyst estimates.
 






Zosano is not the only biotech that divulged belt-tightening steps today. Here’s a take a look at a few of the others:

— Athenex revealed prepare for a “substantial expense decrease strategy” intending to slash costs by more than 50%. The cost-cutting strategy comes a bit more than one year after the FDA declined the business’s oral variation of chemotherapy, asking the business to perform another Stage 3 research study. Buffalo, New York-based Athenex reported having $35.2 million in money and money equivalents since completion of 2021.

— Gene treatment designer Passage Bio revealed strategies to cut its personnel by 13% in an effort to lower costs and extend its money runway into the 2nd quarter of 2024. The Philadelphia-based business stated it will concentrate on programs being established under a collaboration with the University of Pennsylvania’s Gene Treatment Program, along with its 3 lead clinical-stage programs for uncommon neurological conditions. Passage Bio reported a money position of $128.9 million at the end of in 2015.

— Epilepsy and seizure medications designer Ovid Rehabs is cutting its labor force by about 20%. The New York-based biotech stated it anticipates the cuts will extend the business’s money beyond 2024. Ovid’s previous lead program, a potential treatment for Angelman syndrome, stopped working an essential research study in 2020. However the biotech landed $196 million in 2015 by offering to Takeda Pharmaceutical rights to a partnered epilepsy program. Ovid put a few of that money to operate in January, obtaining from AstraZeneca rights to preclinical little particles in advancement for treatment-resistant types of epilepsy. The business’s reported having $187.8 million in money at the end of 2021.
 






Sanofi cuts 2 dozen Kadmon staffers after $1.9B buyout
By Eric Sagonowsky Apr 6, 2022 10:26am
Paris-based Sanofi shelled out $1.9 billion for Kadmon last year. Now it's closing a New York City office and laying off 25 staffers. (Photo by Chesnot/Getty Images)
Looking to bolster Sanofi's portfolio of marketed drugs and pipeline prospects, CEO Paul Hudson went on a dealmaking spree last year. That included the drugmaker's $1.9 billion buyout of Kadmon, where more than two dozen staffers are now losing their jobs.

In a New York State filing, Sanofi says it's laying off 25 Kadmon employees as it closes the site at 450 East 29th in New York City. That's the location of Kadmon's former headquarters, according to SEC records.

After the buyout and the "integration of resources, the business will be permanently closing," the filing says. The layoffs will start in July and continue through April 1, 2023.

A Sanofi representative confirmed that the company "decided to exit the Kadmon New York site" in the third quarter.

"Kadmon employees at that location have been notified and have an opportunity to apply for positions at Sanofi," he added. "Sanofi will be working with Kadmon employees to find suitable positions as appropriate.”
 






In a one-two gut punch after kidney drug CRL, Akebia slapped with partial hold and will lay off 42% of staff.

Snakebit after a surprising CRL for its lead pipeline program last week, Akebia Therapeutics is facing another roadblock at the FDA — and layoffs are now on the way.

In a filing with the SEC on Thursday morning, Akebia said that on April 1, three days after receiving its CRL for vadadustat to treat anemia due to chronic kidney disease in adults, the FDA issued a partial clinical hold on the drug’s pediatric studies. As a result, Akebia will suspend all vadadustat studies in children.

Then, on Monday, Akebia approved a 42% reduction in its staff, it told the SEC. Akebia expects to complete the layoffs rather quickly, noting the process should be completed by the end of the second quarter.
 






Imara to reduce staff by 83% amid biotech shakeout
Published April 18, 2022
  • Imara is the latest biotech to cut jobs this year, revealing on Friday plans to lay off 83% of its workforce after disappointing clinical results led the company to shelve its top drug candidate.
  • Imara was developing a medicine known as tovinontrine for the blood diseases sickle cell disease and beta thalassemia as well as a type of heart failure. However, Imara decided earlier this month to stop development in all three indications after the drug didn't meaningfully benefit patients in two Phase 2 studies.
  • According to a regulatory filing, all but six Imara employees will be laid off by the end of the second quarter while the company evaluates its strategic options. Imara had 41 full-time employees, 29 of whom worked in research and development, at the end of 2021.
 






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