Eisai confirms 20% cut in US workforce

pharmafile | March 8, 2011 | News story | Manufacturing and Production, Research and Development, Sales and Marketing Aricept, Eisai, Halaven, US, donepezil, eribulin, pharma job cuts 

Eisai’s planned job cuts will fall heaviest on its US operations, where 20% of the workforce will be let go in less than a month.

The company plans to shed some 600 jobs by 1 April, and said R&D, sales and marketing, manufacturing and administrative staff would all be affected.

Eisai has operations in Massachusetts, New Jersey, North Carolina, Pennsylvania and North Carolina, but said it does not plan to close any of its main offices or facilities.

Lonnel Coats, president and chief executive of Eisai Inc, said: “We are grateful to our colleagues, each of whom has played an important role in bringing medicines to patients. We are aware of the impact that our reorganisation will have on some employees and will work with them to ensure that their transition to new careers is as smooth as possible.

“This restructuring is essential to our remaining competitive in this rapidly changing environment,” he added.

The cuts are part of a wider five-year plan by Eisai to shed 900 jobs in the US, Europe and Japan, but the impending loss of US patent protection for Aricept (donepezil) looks to have steered the firm’s decision-making.

The Alzheimer’s drug made the Japanese pharma company 322.8 billion yen ($3.89 billion) in revenue for 2010, accounting for about 40% of its total sales.

Eisai said its future US focus would be on neuroscience and building up its oncology portfolio, which includes the new breast cancer drug Halaven (eribulin).

Dominic Tyer

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