Sanofi-Aventis to cut 25% of workforce in US pharmaceutical operations as it faces a slew of patent expiries; signs vaccine preparedness deal

Confirming earlier media speculation, later on Friday, French drug major Sanofi-Aventis (Euronext: SAN), which is in the throes of an $18.5 billion hostile takeover attempt for troubled US biotech firm Genzyme (The Pharma Letters passim), said that it plans to streamline its US Pharmaceutical Operations as part of the company’s previously announced $2.8 billion ongoing transformation “to better respond to patients and customers in a challenging health care market place.”

The restructuring will include an estimated 25% work force reduction in US pharmaceutical operations, eliminating around 1,700 positions in total. These decisions will be finalized by mid-December, the firm noted.

The company also continues to shift resources to strategic priorities, improve efficiencies and simplify infrastructure. Going forward, the focus of US pharmaceuticals will be diabetes, atrial fibrillation and oncology. This restructuring will allow the company to focus resources and people on these key areas. It will also position it for growth following the impact of patent expiries, increase business development and other innovative partnerships, and ensure appropriate investment in late-life cycle products. Around 25% of Sanofi-Aventis’ revenues will be challenged by generic competition by 2013, including its super blockbuster blood thinner Plavix (clopidogrel), as well as the anticoagulant Lovenox (enoxaparin sodium) and Eloxatin (oxaliplatin) for colon cancer, which together generated sales of over $9.2 billion last year.