Sumitomo Pharma is gearing up for some tough decisions at its U.S. branch this March, with plans to cut down its workforce significantly, affecting about 400 employees. It’s a move that comes in the wake of some tough times, highlighted by slow sales and the end of their exclusive rights to sell Latuda, a key drug for schizophrenia. This round of layoffs is going to slash the subsidiary’s staff by 20%, piling onto the roughly 500 positions they had to let go last July.
The firm pointed out that the sales of three major products, including a treatment for prostate cancer, didn’t hit the financial targets they were aiming for. This shortfall in revenue is a big reason behind the need to reduce their workforce. As for the severance deals for those being laid off? That’s still up in the air.
On the financial front, things are looking pretty grim for Sumitomo Pharma. They’re bracing themselves for a consolidated net loss of 141 billion yen (that’s around $937 million) for the fiscal year ending this March. This anticipated loss is a heavy blow, especially following a significant 74.5 billion yen loss from the previous year. It highlights the urgency for the company to revamp and get its financial footing back on solid ground.
