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2022-06-30| Funding

These Pharma Companies Are Laying Off Employees Due to Restructuring

by Fujie Tham
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Novartis is reported to lay off 8,000 employees following its reorganization effort announced this April, while Oyster Point Pharma is also streamlining its operating expense by reducing jobs and other expenses.

In the next months, approximately 7.4% of Novartis’ international workforce will be laid off, and units such as Pharmaceuticals and Oncology will combine into Innovative Medicines (IM) with separate US and international commercial divisions, saving $1 billion in the process. Oyster, a commercial-stage biopharmaceutical company, is diverting additional resources to expand the launch of its Tyrvaya dry eye disease nasal spray.

Related article: US Court Rules Novartis Blockbuster Multiple Sclerosis Drug’s Patent Invalid

 

Novartis’ Restructuring Will Save Around $1B by 2024

 

Novartis CEO Vas Narasimhan’s big streamlining plan focuses on removing duplicated departments, merging functionally similar business units, increasing efficiency with a “leaner” organizational structure, and opening up resources for deals and acquisitions.

“The simpler organizational model we are unveiling today is central to our growth strategy as it will make us more agile and competitive, enhance patient and customer orientation, unlock significant potential in our R&D pipeline and drive value-creation through operational efficiencies,” said Vas Narasimhan.

The Swiss pharma also highlighted its strong position to deliver and maintain its in-market medicines and up to 20 major pipeline assets that could be approved by 2026, eyeing to be in the top 5 best-selling pharma in the US.

Related article: Oyster Point’s Nasal Spray for Dry Eyes Notches FDA Approval

 

Oyster’s Doubling Down on Dry Eye Medicine Launch

 

Princeton, New Jersey-based Oyster Point announced that the pharma will adopt a trimming plan “aimed at maximizing the commercial potential of Tyrvaya (varenicline solution) Nasal Spray and creating value for Oyster Point stakeholders.”

Oyster said the plan will reduce operating expenses by around $6-8 million by Q2 2022, and will further cut expenditures by approximately $40-48 million in 2023. The pharma will cut lower non-employee-related general, administrative, research, and development resources, and lay off a maximum of 50 positions across the organization, despite projected strong sales of the Tyrvaya dry eye drug. 

The plan also refocuses on R&D efforts on its OC-01 (varenicline solution) nasal spray to target Stage 1 Neurotrophic Keratopathy and Enriched Tear Film (ETF) Gene Therapy to target Stages 2 and 3 Neurotrophic Keratopathy. The latter gene therapy was submitted to the FDA and the Oyster is expecting to assemble for a Pre-IND meeting later this year.

 

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