Forest, Eisai announce slim-downs
Forest Labs said today that its cost-savings initiative—dubbed Project Rejuvenate—is aimed at reducing operating expenses by $500 million. The company said it's focusing on three areas to save costs: realigning R&D, reducing marketing expenses, and slashing SG&A and other expenses. The Manhattan-based drugmaker said it expects to realize these plans by the end of FY2016.
Additionally, Forest announced it purchased US marketing rights for Merck's Saphris—a treatment for schizophrenia and acute bipolar mania. Merck will be paid $240 million in an upfront payment with the possibility of future payments for “defined sales milestones,” Forest said in a statement. Saphris recorded net sales of $120 million for the 12-month period ending September 30, 2013.Eisai, meanwhile, announced late last week that it will cut 130 positions in the US and Europe. According to a statement by the Tokyo-based drug manufacturer, the cuts are a part of its goal of "focusing and strengthening product creation capabilities."