Will cut around 1,000 jobs in Europe
Danish drugmaker Lundbeck is to cut around 1,000 jobs in a restructure that will save approximately DKK3bn (US$444.6m) by 2017.
The company, which develops treatments for brain diseases, said it aims to 'significantly improve profitability and the company’s value creation' to enable it to invest in future growth.
Under the plan, Lundbeck will 'restructure headquarter functions and commercial operations in Europe and other markets'.
Part of this involves expanding its newly established Business Service Centre in Krakow, Poland.
The company will also now focus on the products Abilify Maintena, Brintellix, Northera, Onfi and Rexulti and will close some early-stage R&D projects.
Kåre Schultz, President and CEO, said:'Together with my leadership team I believe this programme will make Lundbeck drive sustainable value creation for all our stakeholders. We are aware that these decisions will affect many of our employees and we will strive to support these employees as we implement the changes.'
As part of the restructuring programme a reclassification of DKK4.8bn is included as research and development costs in the second quarter 2015. The reclassification is a change in accounting estimate based on management's reassessment of certain previously capitalised product rights.