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Lundbeck to make massive savings round

TheCopenhagenPost
August 19th, 2015


This article is more than 9 years old.

Pharmaceutical company cutting 1,000 jobs

Losing patents on drugs like Cipralex is costing Lundbeck big money (photo: Lundbeck)

After a weaker than expected second quarter, the pharmaceutical company Lundbeck has set itself a target of saving 3 billion kroner by 2017. To achieve this it intends to cut 1,000 jobs.

Lundbeck’s new chief executive, Kåre Schultz, presented the company’s second quarter results this morning.

“Together with my management team, I believe these changes will drive sustained value for all our stakeholders,” said Schultz.

“We are aware these decisions will affect many of our employees, and we will make an effort to support these people when we implement the changes.”

Cuts across the board
The cuts will occur at the company’s Valby headquarters and in “other markets”, according to the release. Lundbeck currently has 6,000 employees in 57 countries.

All the functions of the headquarters will be restructured, along with administration cuts at corporate subsidiaries. Lundbeck will expand its recently established service centre in Krakow, Poland.

The company lost nearly 4 billion kroner due to a worse than expected second quarter.

One reason for the poor performance is that the company’s European patents on two of its top sellers have expired, leaving the door open for less expensive generic versions to hit the market.

READ MORE: Lundbeck fined 700mn kr for blocking generic drugs

Lundbeck’s new products have also under-performed.

Schultz said the savings will help the company get back into the black next year.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”