Melbourne, 18th November 2010 – John Bird, pharmaceutical company analyst at Datamontior, comments on Roche’s plans to cut 6 percent of its global workforce, or 4800 jobs, over the next two years as part of efforts to make annual cost savings of $2.4 billion:
“Many Big Pharma companies have restructured in recent times due to imminent patent expiry of key blockbuster drugs but it has been a particularly tough year for Roche. Recent Q3 financials have shown a slow down in performance over last year, mainly due to a decline in demand for the company’s influenza drug Tamiflu.
“Research and development has been disappointing with delays in taspoglutide, a knock back from the FDA regarding trastuzumab-DM1 and termination of ocrelizumab development. Avastin, one of Roche’s big three products, is also facing questions about its benefits in breast cancer and other tumour types.”
“Despite all this the company’s operating profit in 2009 was above average and the cost savings announced today will help cement Roche’s strong fiscal position over the next six years.”