Actelion to cut jobs, refocus R&D
Switzerland-based Actelion has launched a cost saving initiative as an integral part of its strategy for value creation outlined in early May. The initiative will cut up to 135 positions and refocusing the company’s R&D activities toward orphan and specialty indications to generate additional specialty franchises, enabling it to fully capitalize on the significant growth opportunities in its core area of expertise of pulmonary arterial hypertension (PAH).
The cost saving initiative addresses several challenges facing the company, including the continued strength of the Swiss Franc, increased competition in the U.S., and the difficult pricing and reimbursement environment in Europe.
The refocusing of Actelion's R&D efforts is expected to result in lower and more targeted R&D spending. Following a portfolio review, those projects which are not in alignment with this strategy will be either stopped, or prepared for partnership or out-licensing. Cost savings will start to take effect in the latter part of 2012 and accelerate in 2013. The refocusing of the pipeline will require a realignment of the organization.
The cost saving initiative is expected to result in a reduction of up to 135 positions in R&D and administration. The company said it is committed to minimizing the number of potential redundancies through natural attrition, early retirements and other such measures.