Lundbeck continues restructuring to drive profitability

Danish CNS drug specialist Lundbeck (LUND: CO) today announced the continuation of the process of evolving its business model including optimization of Lundbeck’s commercial structure, leading to job cuts of 180-200, to put the company in the best possible position to successfully launch its new medicines.

Just as Lundbeck and partner Japan’s Takeda received US Food and Drug Administration approval for their major depressive disorder drug Brintellix (vortioxetine; The Pharma Letter October 1), the Danish firm said this will be achieved through a simplified commercial structure, increased alignment across countries, and improved competencies and investments in areas such as market access.

Lundbeck’s Fit-for-the-Future program was announced this summer, which included the reduction of around 600 positions (TPL June 17). This program follows the plan to divide the commercial operations into six regions: Europe, USA, Canada, Asia, Latin America and Middle East & Global Distribution to reflect the global diversification of the company and ensures full focus on growth markets. Furthermore the commercial structure in Europe with its more than 30 affiliates will be organized in 10 strong business units. The Fit-for-the Future program is expected to run in the period 2013-2015.