Swiss biotech Actelion implements cost saving initiative

Switzerland-based Actelion (SIX: ATLN), Europe’s largest biotech company, says that it has now concluded the Swiss employee consultation process in relation to its previously-announced  cost savings initiative (The Pharma Letter July 12), following which it has minimized the number of redundancies resulting from the refocusing of the company's R&D activities.

The cost reductions are in anticipation of patent loss in 2015 of its top selling drug Tracleer (bosentan), which now generates nearly 90% of group turnover, as well as the impact of a strong Swiss franc and reimbursement pressures in Europe.

Through natural attrition and other measures, the number of actual redundancies in Switzerland has been reduced to a maximum of 40. The initial expectation was up to 70 redundancies at Actelion's headquarters. In addition, an agreement with the Employee Representatives has been reached in relation to social plan measures in Switzerland. These include severance payments, early retirement packages, out-placement support as well as additional benefits.