The next phase in the company’s strategy towards 2023 is expected to affect around 1,000 positions in the global organization over the next two years.
In 2020, LEO Pharma unveiled its strategy towards 2030. The first phase of this process – including the introduction of a new capital and governance structure – was recently completed.
The next phase, announced now, is about “focusing on core business and operational efficiency, and improving competitiveness and continuous adaptation to the commercial model that best fits the company’s product portfolio and to the evolving needs and preferences of external stakeholders,” states the company.
“We are at a defining moment in our transformation journey – and in the history of our company even.”
“We are at a defining moment in our transformation journey – and in the history of our company even. To release the full potential, we must now increase profitability and make bold investments in the best and most innovative treatment options for the patients we serve,” says Anders Kronborg, Chief Financial Officer and Acting CEO and President of LEO Pharma.
Read more: LEO Pharma’s CEO leaves the company
In-house drug discovery
Following the new strategy, LEO Pharma’s Global R&D organization will focus the in-house drug discovery on promising small molecule technologies and further increasing productivity to realize the company’s ambition to launch a new innovative asset or enter a new indication every two to three years.
International hubs will be closed
Other initiatives include driving efficiencies through outsourcing, further standardization, boosting digitalization as well as centralizing systems, data and analytics. Also, LEO Pharma’s Open Innovation, Regenerative Medicine and the Science & Tech Hubs in Asia and Boston, US, will be closed as a part of the changes announced today.
It will affect employees
The changes are expected to affect around 1,000 positions in the global organization over the next two years. Today, the announcement has directly affected 68 people in LEO Pharma’s global organization. Final estimates for headcount impact in all areas of the business are subject to completion of applicable consultation processes, states the company.
“It will affect employees who have served the company with loyalty and dedication for many years.”
“The new operating model we announce will make a much more simple, agile and efficient LEO Pharma and this is the best way forward for us to ensure sustainable business model for the future. It will affect employees who have served the company with loyalty and dedication for many years. We will do our utmost to support our colleagues as changes are implemented,” says Kronborg.
An IPO within a four-to-five year horizon
The recent FDA approval of tralokinumab in the US was a major milestone for the company, it states. Other key achievements include the efficiency gains and savings already delivered, and successfully expanding sales of the established product portfolio.
By bringing tralokinumab and other innovative treatments successfully to the market and introducing the new operating model, LEO Pharma is poised for delivering consecutive double-digit growth and an EBITDA margin of 25% by 2025 preparing the company for an IPO within a four-to-five year horizon, it states.
Photo of Anders Kronborg, Chief Financial Officer and Acting CEO and President of LEO Pharma