Merck to Cut Over 200 Jobs in France Amid Restructuring; Amgen Trims 149 Roles in U.S. Neuroscience Exit

Compiled by Keke

According to a November 12 report by French media outlet La Montagne, Merck Sharp & Dohme (MSD) announced a significant corporate restructuring initiative that morning. The MSD-Chibret Mirabel production and research facility in Riom, France, will reduce its workforce by more than one-third and faces the possibility of being sold off entirely. In late October, MSD had already issued a round of layoff notices, planning to cut nearly 500 jobs from its U.S. sales and headquarters commercial teams early next year.

MSD-Chibret Mirabel Site

It is reported that the facility in Riom, France, specializes in the manufacturing and packaging of sterile pharmaceuticals, including ophthalmic medications and antibiotics. Established 41 years ago, it is one of MSD’s major plants in France and even across Europe. The site currently employs 584 people, and the latest round of layoffs will affect approximately 200 positions.

A Merck & Co. spokesperson stated that the project to restructure and revamp the Riom plant aims to address the structural changes facing MSD-Chibret.

Claude Dagost of the French Workers' Force (FO) union pointed out, "Although MSD Group's annual profits reach billions of euros, the global economic situation has changed. This multinational corporation no longer has interest in investing in France; now they prefer to focus on China, Ireland, or India."

The restructuring of the Liyong Base will be carried out in two phases. First, the laboratories at the Research Center will be closed. The center currently has 106 employees and was targeted for proposed divestment in 2015, but the plan was ultimately not implemented due to reasons such as strikes. “In recent years, the number of toxicology studies commissioned to the Research Center has significantly decreased,” said a relevant official.

Second, restructuring of production operations. “In response to the continuous decline in output in recent years and the underutilization of its production lines by the Production Center, the company plans to restructure its production activities,” MSD stated, indicating that ultimately 101 positions may be eliminated.

As part of this restructuring plan, MSD has considered additional measures. In addition to potential layoffs of 207 employees, the company announced a plan to seek a new buyer for its Riom production and R&D site, stating that “this is a sustainable approach capable of delivering higher output while maintaining the vitality and employment levels at the facility.”

Neuroscience R&D Is Challenging: Amgen Officially Lays Off 149 Employees

Recently, Amgen filed a notice under the Worker Adjustment and Retraining Notification Act in Massachusetts, USA, marking the formal commencement of its plan to lay off 149 employees by year-end; however, Amgen will retain its operations and development activities at its Cambridge site in the state.

A few weeks ago, Amgen revealed that it was scaling back its neuroscience operations on the U.S. East Coast, a move that could threaten approximately 180 jobs.

Amgen’s operations at its Cambridge research site have primarily focused on neuroscience, employing R&D personnel with expertise in medicinal chemistry, pharmacokinetics and drug metabolism, genetics, cell biology, and toxicology. However, as Amgen gradually withdraws from the neuroscience field in its R&D strategy, the current staffing levels are largely excessive.

In July this year, Amgen, Novartis, and the Banner Alzheimer’s Institute jointly announced the termination of two pivotal Phase II/III studies of the BACE1 inhibitor CNP520 (umibecestat) for the prevention of Alzheimer’s disease, as results showed worsening cognitive function in patients receiving the drug for prevention. Subsequently, Amgen decided to withdraw from this development program as well as from neuroscience research and development.

Although Amgen itself has withdrawn from neuroscience research, it continues to engage in the field through other means. In 2012, Amgen acquired deCODE, a company specializing in human genetics research and analysis, for $415 million. This acquisition helped Amgen enter the field of genetics related to neurological diseases.

In mid-October, prior to Amgen’s formal dissolution of its neuroscience business unit, Eli Lilly announced that it would shut down its Erl Wood Neuroscience Centre in Surrey, UK, by the end of 2020. This decision resulted in approximately 80 layoffs within the neuroscience division, with two-thirds of the affected employees being relocated to the United States. In July 2018, Pfizer also announced its withdrawal from the research and development of new neuroscience programs, including those targeting Alzheimer’s disease and Parkinson’s disease. Subsequently, in October, Pfizer invested in the launch of a new company, Cerevel Therapeutics, thereby continuing its involvement in the development of therapies for central nervous system disorders through equity investment.

Reference Source:

[1] Amgen to cut 149 staff in retreat from neuroscience R&D

[2] Merck shutters French research site in a reorganization aimed at eliminating more than 200 jobs