The quest to save patients and lives is always at the forefront of medicine, but is the quest to save money even more important to the pharmaceutical industry?
Although we may be seeing larger manufacturers like Eli Lilly & Co. and Novo Nordisk struggling to meet the increased demand for their weight-loss medication, manufacturers such as Bristol-Myers Squibb (BMS) are struggling just as much.¹ As BMS just announced its plan to reduce its expenses by the end of 2025, cutting it by nearly $1.5 billion, we are seeing nearly 2,200 or more layoffs in employees. This reduces the headcount by 6% and makes up for nearly 30% of all biopharma jobs that have been lost thus far in 2024.² CEO Christopher Boerner states that these layoffs are meant to strengthen the company’s long-term growth profile.³ It is expected that in combination with laying off thousands of employees, the company plans to trim its experimental medicines, reduce third-party spending, and reduce an “array” of offices and laboratories.
However, with the looming expiration of their top-selling blood thinning and cancer immunotherapy drugs, Eliquis and Opdivo respectively, Bristol Myers’ growth will be limited. Already proving true, this can be seen with their product, Revlimid, a multiple myeloma treatment, as it is already dealing with generic competition.¹&²
To combat this, however, BMS has been assertive in their mergers and acquisitions, putting forth nearly $18 billion on Karuna Therapeutics and radiopharma bio RayzeBio. Karuna Therapeutics is projected to be a billion-dollar producer, with its schizophrenia treatment KarXT expected to garner FDA approval this coming September.⁴ Due to this acquisition, BMS is also seeing an increase in their debt to more than $55 billion, with only $10 billion of it being paid down within the next two years.³
So, at the expense of its employees, are we seeing BMS strive for the quest to save patients and its people, or the quest to save money and increase profit?
Bristol Myers Squibb, however, is not the only company facing massive layoffs. Pfizer, for example, recently cut its research site in Boulder, Colorado, and closed down an internal research and development subunit, costing numerous jobs internationally. Sanofi, Novartis, and Bayer are all facing similar restructuring by reducing their workforce.² Biogen, alone, has reduced its employee count by nearly 1,000 workers.¹
As all these companies restructure their workforce and face looming patent expirations, the field of larger manufacturers is undergoing a shift. While BMS is not alone in this change, does this mean that all such manufacturers will face the same fate of mergers and increased debt as BMS?
- Big Pharma layoffs continue as Bristol Myers Squibb cuts 2,200 jobs, $1.5B in costs. Benefits Pro. Published May 10, 2024. Accessed May 23, 2024.
https://www.benefitspro.com/2024/05/10/big-pharma-layoffs-continue-as-bristol-myers-squibb-cuts-2200-jobs-1-5b-in-costs/?slreturn=20240523-15048 - Bristol Myers Squibb’s decision to lay off 2,200 employees comes after M&A spending spree. BioSpace. Published May 10, 2024. Accessed May 23, 2024.
https://www.biospace.com/article/bms-decision-to-lay-off-2-200-employees-comes-after-m-and-a-spending-spree/ - Bristol Myers restructuring to save $1.5 billion in costs, lay off 2,200 employees. BioPharma Dive. Published May 10, 2024. Accessed May 23, 2024.
https://www.biopharmadive.com/news/bristol-myers-layoffs-restructuring-cost-savings/714254/ - Bristol Myers cutting $1.5B in costs in less than two years, over 2,000 employees impacted. Fierce Biotech. Published May 10, 2024. Accessed May 23, 2024.
https://www.fiercebiotech.com/biotech/bristol-myers-cutting-15b-costs-less-two-years-2000-plus-employees-impacted-2024
