Monday, July 15, 2013

Patent expirations cause job loss

Genetic Engineering and Biotechnology News mentioned patent issues as reasons for the two largest employee cutbacks in the biotechnology area:

As to Eli Lilly:

Why the company did it: Adaption to “changing customer requirements, evolutions in the U.S. health care environment, and the upcoming loss in exclusivity” and projected drop in sales as patent protection expires in December on the antidepressant Cymbalta® (duloxetine hydrochloride) and, in March 2014, on the osteoporosis drug Evista® (raloxifene hydrochloride). The drugs accounted for a combined 20% of 2012 revenues.

As to AstraZeneca:

Why the company did it: Part of a comeback strategy by CEO Pascal Soriot following years of clinical setbacks involving drug candidates the company hoped would make up for sales revenues to be lost from “patent cliff” expirations through 2014, when the company will lose U.S. patent protection for two of its biggest selling drugs—its proton pump inhibitor Nexium, and its asthma and COPD medicine Symbicort.

See the story Top 15 Job-Cutting Companies of 2013 (So Far)


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