Another Week in Pharma Job Cuts

This week brought a stream of bad news on the pharma job front, with at least four companies announcing substantial cutbacks. Worse, scientists were the main target for layoffs at three of those companies—Sanofi-Aventis, Arena, and Elan. As everyone’s favorite employment watchdog Chemjobber commented on an In the Pipeline post about cuts at Abbott: When, when, when will it stop? Here’s a look back at the news from this week: –Sanofi is shedding 90 research jobs at its Bridgewater, N.J., site as part of “the evolution of the R&D portfolio towards more biologic-based therapies,” the company told C&EN. The French pharma firm is ceasing chemical library and chemical development activities, including pharmaceutical development and analytical science. Meanwhile, discovery-stage laboratory activities within several groups, including Lead Identification Technologies, Structure, Design & Informatics, and Analytical Sciences, will be reduced. Some people will be shifted over to the company’s Molecular Innovative Therapeutics group, which will be transformed into “a cluster of small multidisciplinary biotechs with specialized expertise in key diverse therapeutic approaches.” This new approach sounds an awful lot like what GlaxoSmithKline has been doing over the last two years—creating smaller, more independent units in the hopes of mimicking the culture and innovative spirit of small biotechs. –Arena Pharmaceuticals is cutting 25% of its staff, or 66 employees, by the end of March. The move isn’t unexpected. Last fall, FDA gave the San Diego-based biotech a thumbs down for its obesity drug lorcaserin based on concerns that it had caused tumors in rats. Now, FDA is asking for a slew of new data, meaning Arena will be unlikely to refile its application for approval until 2012, analysts say. See here and here for more on its lorcaserin trials and tribulations. –Abbott is slashing 1,900 jobs in the U.S., mirroring layoffs it made last year in Europe following its acquisition of Solvay Pharmaceuticals. The cuts will come from its commercial and manufacturing operations, with over half the job losses concentrated in Northern Illinois. In a conference call, Abbott CEO Miles D. White blamed the restructuring on several factors: the slow recovery of the global economy, costs associated with healthcare reform, European pricing pressures, and a harsher regulatory environment that has made it tough for drugs to get approved. –And last but not least, Elan has laid off 10% of its staff, or about 130 workers, with its R&D site in South San Francisco most heavily impacted. Researchers accounted for about half of the job losses. If we’ve missed any layoffs that chemists should be aware of, drop us a note or leave a...

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Haystack 2010 Year-In-Review

This Friday, we’re looking back at 2010’s big news in pharma and biotech, both the good and the bad. Check out our picks and be sure to weigh in on what you think we missed. 1. Provenge Approved In April, Dendreon’s Provenge became the first approved cancer immunotherapy. Dendreon CEO Mitch Gold called it “the dawn of an entirely new era in medicine.” And while prostate cancer patients are excited for a new treatment option, the approval is perhaps most exciting for its potential to reignite interest in cancer immunotherapy research. There’s a lot of room for improving the approach—Provenge is, after all, expensive and highly individualized. Now that immunotherapy have been proven to work, there’s hope that the lessons learned in both its discovery and clinical development will aid scientists in inventing even better cancer vaccines. 2. Obesity Field Slims The obesity drug race played out in dramatic fashion in 2010, with three biotech companies-Vivus, Arena, and Orexigen, each making their case for its weight-loss medication before FDA. As of this writing, Orexigen’s drug Contrave seems to be on the surest footing to approval, but longtime obesity-drug watchers know that caution seems to rule the day at FDA, so nothing is a sure bet. Orexigen’s Contrave and Vivus’s Qnexa are both combinations of already-approved drugs, whereas Arena’s Lorqess is a completely new molecule. When C&EN covered the obesity race in 2009, it seemed that Lorqess (then going by the non-brand-name lorcaserin) had the cleanest safety profile, but Qnexa was best at helping patients lose weight. But FDA’s panels didn’t always play out the way folks expected. There were safety surprises- notably the worries about tumors that cropped up in rats on high doses of Lorqess, and the extensive questioning about birth defect risks from one of the ingredients in Vivus’ Qnexa. The fact that FDA’s panel voted favorably for Orexigen’s Contrave, a drug that’s thought to have some cardiovascular risks, generated discussion because FDA pulled Abbott’s Meridia, a diet drug with cardiovascular risks, from the market in October. The dust still hasn’t fully settled. Arena and Vivus received Complete Response Letters from FDA for Lorqess and Qnexa. Vivus has submitted additional documentation and a followup FDA meeting on Qnexa is happening in January. Also to come in January is the agency’s formal decision on Contrave. And if you’re interested in learning about the next wave of obesity drugs coming up in clinical trials, read this story in Nature News. 3. Sanofi & Genzyme: The Neverending Story Speaking of drama, Sanofi’s pursuit of Genzyme has been in the headlines for months now, and promises to stretch well into 2011. The...

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This Week in Pharma Job Cuts…

As we know, its tough out there for scientists working in the pharmaceutical and biotech industries. This week brought yet another spate of drug industry cutbacks that seemed worth chronicling. For those keeping track: Abbott Laboratories is getting rid of 3% of its workforce, or about 3,000 jobs, as it folds Solvay’s pharmaceuticals business into its operations. Most of the cuts will come from Europe: 300 jobs will be trimmed in Hannover, Germany; 500 in Weesp, the Netherlands; and Solvay’s U.S. headquarters in Marietta, Ga., will be shuttered. According to SEC filings, certain R&D programs will be discontinued (perhaps they can be auctioned off?). Alnylam Pharmaceuticals, a leader in RNAi technology, is shedding 25-30% of its employees after Novartis decided not to opt-in to a technology licensing clause worth $100 million at the end of a five-year pact between the companies. The biotech raked in $125 million in funding during the lifetime of the pact, and had 25 full-time employees working on projects for Novartis. An interesting tidbit from a conference call held this morning from Alnylam: According to Alnylam’s CEO John Maraganore, Novartis now has 100 people working on RNAi technology at its site in Cambridge, Mass. Clearly they made a commitment to the field with their five-year pact with Alnylam, but somehow the sheer numbers were surprising. Alnylam expects to end the year with $320 million in cash on hand. Bristol-Myers Squibb is cutting 3% of its workforce, estimated at around 800 jobs, as generic competition on its blood thinner Plavix looms. The company had already unveiled plans in 2008 to eliminate about 10% of its workforce, or about 3,700 jobs, by the end of this year. A 2007 cost-savings program had separately targeted 4,350 jobs. Genzyme said last week it would eliminate 1,000 jobs over the next 15 months as it tries to right its manufacturing operations and combat takeover attempts. Lundbeck is shedding 50 R&D jobs amid a reorganization of its R&D operations in Denmark and the U.S. The specialty pharma firm is shifting its focus to three main areas of biology– neurodegeneration, neuroinflammation and synaptic transmission—related to brain diseases, and will rely more on external partnerships. Merck, meanwhile, appears to be having a tough time making cuts in the Netherlands, where it is essentially ridding itself of Organon’s R&D operations. According to Radio Netherlands, the big pharma firm is now negotiating with the Dutch government over the thousands of jobs slated to be lost in the...

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Scientists On The Move

I like taking the time to read the fine print in journal articles. When I first read the antibiotic work I posted about yesterday, I noticed that a few of the authors on the paper had little crosses next to their names. If you go to said fine print, you will find that they are no longer at GSK, but are located elsewhere. I’m no Chemjobber or Electron Pusher, but I try to pay attention to researchers’ moves. Drake S. Eggleston, Fabrice Gorrec, Earl W. May & Alexandre Wohlkonig Present addresses: Innovalyst, 1000 Centre Green Way, Suite 200, Cary, North Carolina 27513, USA (D.S.E.); MRC Laboratory of Molecular Biology, Hills Road, Cambridge, CB2 0QH, UK (F.G.); OSI Pharmaceuticals, 1 Bioscience Park Drive, Farmingdale, New York 11735, USA (E.W.M.); Vrije Universiteit Brussel, VIB Department of Molecular and Cellular Interactions, Pleinlaan 2, 1050 Brussels, Belgium...

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Reuters Nails Pharma Jobs Frustration But Misses On Biologics, Small Molecules

This AM, Reuters released a special report about the state of drug R&D. Overall, I enjoyed reading the piece. Though there isn’t a whole lot in there that C&EN’s readers who work in the area won’t already know, I think the article does a great job of capturing how scientists- and young scientists in particular- feel about their job situation. The folks quoted in the article are feeling more than a little frustrated. That said, there were a couple of statements in this article that were unfair, misleading, or downright pessimistic. In the section on biotech, we have this generalization: Biotech’s “large molecule” protein drugs, made using genetic engineering, have proven superior at fighting complex diseases like cancer to many conventional “small molecule” chemical drugs. That argument is a little hard to swallow. You might say that the side effects from a protein drug are more benign than those of traditional chemotherapies like 5-fluorouracil. And Herceptin, a biologic drug, has made a big difference for women with a specific type of cancer. But what about Gleevec? If you have cancer driven by a certain genetic mutation, Gleevec works-and it’s a small molecule. Look closely at Herceptin or Avastin-a biologic cancer drug the Reuters article mentions in its next paragraph- and you’ll notice that for treating some cancers they must be taken with small molecules– carboplatin, paclitaxel, or something else. Both parts of the treatment- the small molecule and the protein- are necessary for the treatment to work its best. Maybe cancer isn’t the best example- after all, every cancer is a different challenge. What about other diseases? In the past, we’d written about how biologic drugs are the best we’ve got for multiple sclerosis. Humira, a biologic treatment for rheumatoid arthritis, is another success story that the Reuters article mentions. But what about HIV? There are an awful lot of small molecules on this list of approved HIV drugs, and when used correctly, they keep the disease at bay for years. Yes, there’s some wiggle room in the Reuters statement because of the use of the word “many”. Maybe it’s the organic chemist in me speaking, but I get pretty miffed when I hear pessimistic statements about small molecules. A smaller nitpick but a nitpick nonetheless- the article seems to use the words “biotech” and “biologic” interchangeably, which might confuse someone who isn’t familiar with the area. By 2014, the world’s two top-selling prescription drugs won’t be tablets sold in blister packs but needle-based biotech treatments — Avastin for cancer, sold by Roche, and Humira for rheumatoid arthritis, from Abbott Laboratories — according to consensus forecasts compiled by Thomson...

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Just A Quick Note

Posting might be irregular here for the next day or two, as Lisa and I are in the midst of C&E News’s advisory board meeting. In the meantime, I’ll leave you with a few links of interest. Derek Lowe discusses Two Bad Ideas for remedying the pharma employment situation via @EricMilgram on Twitter, Pfizer warns of 50 layoffs in Durham, North Carolina Silence Therapeutics extends by one year its deal with AstraZeneca to develop methods of delivering drugs based on RNA...

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