The layoffs come as both companies face challenges such as a drop in sales and patent expirations. BMS' anti-coagulant Eliquis and cancer treatment Opdivo, as well as Bayer's blood clot prevention drug Xarelto, are all set to expire in the near future. Other large drugmakers, including Pfizer and Novartis, have also initiated cost-cutting measures, including layoffs. Analysts suggest that these layoffs are part of strategic restructuring efforts to enhance margins amidst financial losses, poor sales performance, and the looming threat of patent expirations.
Key takeaways:
- Large drugmakers Bayer and Bristol Myers Squibb announced thousands of layoffs in Q1 of 2024, as part of a strategy to generate cost savings and prioritize key growth brands.
- These layoffs come in the wake of a 6% drop in Q1 sales of BMS' lung cancer therapy Opdivo and a slight drop in sales for Bayer, which also lowered its full-year earnings outlook.
- Patent expirations for major drugs, including BMS’ Eliquis and Opdivo and Bayer’s Xarelto, present a significant challenge for these companies, potentially leading to further financial losses and layoffs.
- Other large drugmakers, including Pfizer and Novartis, have also initiated cost-cutting measures, including layoffs, in an effort to enhance margins and cope with financial losses and poor sales performance.