OctoPlus reduces workforce by 25% to boost efficiency
The cutbacks, which constitute 25 per cent of the OctoPlus’ workforce, will take place across all of its departments but will not affect operations or its €19m revenue 2009 forecast, according to company spokesperson Rianne Roukema.
Roukema told Outsourcing-Pharma that: “The organisational changes will take place in the following months and will have been concluded by the end of the year.
“As part of our new service based strategy we have designed a revised organisation structure which resulted in the redundancies. With the new organisation we aim to generate the same revenues with fewer personnel.”
OctoPlus’ focus in 2009 has been to develop what it calls a “service-oriented strategy” to provide pharmaceutical industry clients with a dedicated contract drug delivery and manufacturing offering.
The approach seems to be paying off with OctoPlus announcing a diverse range of contracts with pharmaceutical firms over the last nine months. While details of most of these deals have not been released for reasons of confidentiality, Galapagos and Axentis Pharma have both been confirmed as new clients.
In a press statement, CEO Simon Sturge explained how the planned workforce reduction and efficiency drive will further this development process.
“These steps will enhance our ability to build a profitable service organisation although these reorganizational changes will prevent us from being operationally cash flow positive in the second half of the year. The measures taken today will streamline the company going forward.”
Sturge added that the streamlined firm will operate more and attract a broader client base that “will diversify our revenue sources in both drug delivery and pharmaceutical services, aside from our current revenue stream from Locteron.”
