Allergan, King cut sales and marketing
Allergan announced the cuts, affecting about 5% of the Irvine, CA-based company's global headcount, alongside disappointing fourth-quarter results. The layoffs will fall mainly on two areas: US urology sales and marketing, owing to the company's decision to focus on urology specialists and market its overactive bladder drug Sanctura XR to primary care docs through a co-promotion deal with a partner yet to be determined; and US and European marketing personnel as the company “adjusts its back-office structures to the reduced short-term sales outlook for some businesses.”
The company said in a statement: “With the exception of US urology sales force and some low productivity sales territories in Europe, no other sales force positions are affected.”
Bristol, TN-based King Pharmaceuticals said its cuts would result in a total workforce reduction of 22%. Of the 760 positions King is cutting, 240 are eliminations of corporate positions resulting from its acquisition of Alpharma. Another 520 will come from a restructuring initiative aimed at reducing the firm's operating costs following its loss of a patent battle over its muscle relaxant Skelaxin, and of those, 380 are field sales positions, while another 140 are corporate posts.