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Major restructuring at Lundbeck

Lundbeck A/S has announced a new restructuring programme in order to significantly improve profitability and improve the company’s value creation. Lundbeck expects that this restructuring programme will affect approximately 1,000 employees.

Lundbeck needs higher profitability to be able to invest in future profitable growth initiatives leading to better treatments for patients and secure a competitive return on investment and thereby secure value creation.

“Together with my leadership team, I believe this programme will make Lundbeck drive sustainable value creation for all our stakeholders. We are aware that these decisions will affect many of our employees and we will strive to support these employees as we implement the Changes,” said Kåre Schultz, President and CEO.

In the past few years, Lundbeck has gone through major restructurings of its European commercial infrastructure. However, it is necessary to further adjust the commercial set-up primarily in Europe. Lundbeck intends to emphasize the focus on the following products: Abilify Maintena, Brintellix, Northera, Onfi and Rexulti. Furthermore, Lundbeck plans to capture savings through restructuring of all headquarter functions, further minimize G&A functions at affiliates and also expand the newly established Business Service Center in Krakow in Poland. In R&D a number of cost reduction initiatives have been identified including closure of selected early-stage projects.

Lundbeck expects that this restructuring programme will affect approximately 1,000 employees. Final estimates for programme costs, benefits and headcount impact in all areas of the business are subject to completion of applicable consultation processes.

 

Source: Lundbeck