Sanofi-Aventis to cut 380 jobs in Germany

Sanofi-Aventis Germany has confirmed the company will shed 380 jobs by the end of 2008, blaming the difficult conditions facing the pharma industry.

A spokesperson from the parent group in France said the 380 jobs would go from the commercial sector of the German arm, which employs up to 1,700 people. The two other sectors in the Germany - r&d and production - will not be affected by the changes. The French group employs nearly 10,000 people in Germany.

The current "particularly difficult" environment is behind the cuts, said the French spokesperson. Regulations relating to reimbursement of medicinal products have become more stringent and fewer products are being reimbursed, there are more reference prices and there is very strong competition from generics.

In particular, the fact that health insurance providers can sign contracts with generic drug manufacturers has "considerably altered market conditions", according to the spokesperson.

Sanofi-Aventis in France said it would not be making any compulsory redundancies; employees who leave will not be replaced.