17th sep, 2009

Patent expiry = job cuts

An article on Marketwatch clearly shows the connection between pharma companies’ ability to make money and their patents. Eli Lilly & Co has announced a headcount reduction of 14% by 2011. The reason is the expiry of several patents covering the company’s most profitable products. 

 

In their press statement Lilly says that another reaction to the situation is a focus on their research and on overall cost cutting. This is the challenging dilemma: To cut costs, but not focus on the biggest and most risky cost of them all – research. 

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