NEW YORK (CNNMoney) -- The Swiss drugmaker Novartis is cutting nearly 2,000 jobs in the United States, anticipating the impending loss of patent protection on its blockbuster drug Diovan.
Novartis (NVS) said it is reducing its "field force" by 1,630 positions and cutting an additional 330 jobs at its headquarters. Though the company did not specify where exactly these job cuts would take place, its U.S. headquarters is in East Hanover, N.J., and it also has facilities in Massachusetts and California.
Diovan, a blood pressure medication, is the company's top products, bringing in more than $6 billion in revenue in 2010, the most recent year for sales data.
But Diovan will lose its patent protection in September 2012. When that happens, it will open the market for generic production by competing drugmakers such as Teva Pharmaceutics (TEVA) in Israel and Barr Pharmaceuticals in New Jersey, which will cause the price of the drug to plummet.
Novartis (NVS) said it is reducing its "field force" by 1,630 positions and cutting an additional 330 jobs at its headquarters. Though the company did not specify where exactly these job cuts would take place, its U.S. headquarters is in East Hanover, N.J., and it also has facilities in Massachusetts and California.
Diovan, a blood pressure medication, is the company's top products, bringing in more than $6 billion in revenue in 2010, the most recent year for sales data.
But Diovan will lose its patent protection in September 2012. When that happens, it will open the market for generic production by competing drugmakers such as Teva Pharmaceutics (TEVA) in Israel and Barr Pharmaceuticals in New Jersey, which will cause the price of the drug to plummet.