UCB refocuses and cuts workforce 17%
The firm will shed 17 per cent of its workforce and create 400 new positions as part of its transformation into a biopharmaceutical company. The move, which will also see UCB redeploy 300 employees to core technical centres, is designed to save €300m ($444m) over the next three years.
UCB’s plan is in step with the cost cutting efforts of other pharmaceutical majors in the face of growing generic competition. In the Belgian firm’s case US patent protection for Zyrtec and Keppra, two of its biggest sellers, is set to expire within the next 12 months.
Roch Doliveux, UCB’s CEO said: "Patent expiries are challenging times. However, following the recent approval of Cimzia for Crohn's disease in the U.S. and the positive opinions for Neupro for RLS and Vimpat for epilepsy in Europe, the time is now to take action to shape UCB for the future.”
“Earlier this month, we announced the 'SHAPE' project, which aims to re-allocate EUR 300 million within the next three years towards increased investments into UCB's core CNS and immunology business areas while also seeking to improve UCB's competitiveness," he added.
EU biopharmaceutical production capacity to grow 66%
According to a BioPlan Associates' report, which was released in June, biopharmaceutical manufacturing capacity is set to grow by 66 per cent over the next five years, while that in the US is expected to expand 36 per cent.
Study author Eric Langer, Bioplan’s president, said that a major factor to affect the market over the next few years is the need for improved downstream purification systems. He added that “over 54 per of European respondents and 46 per of US respondents to the survey indicated this would be a critical issue.”
The survey also predicts that overall capacity utilization, which has declined consistently since 2003, will continue to fall as a result of both continued industry expansion and yield improvements at existing facilities.
“Over the past four years, the percent of operating capacity at which respondents’ facilities are operating has declined by 9 per cent annually for mammalian cell culture systems and by 13 per cent for microbial fermentation,” added Langer.
