Cut $2.5 billion dollars of "worker-related" costs. And a $1 billion dollar stock buyback....
I was joking, but just looked it up and they are doing a $5 billion accelerated stock buyback...
I don't work in biotech/pharma and I don't know much about business. But from an outside perspective it almost seems like the stock price is more important than the pipeline.
Obviously within reason, if the pipeline was to affect the stock price then remedial action would have to be urgently taken.
I mean, it’s a publicly traded company. It’s their fiduciary duty to do what’s best for shareholder value. That’s the agreement for buying and investing in a publicly traded company. If you don’t wish to be under that sort of dynamic, work for a private company that may have different ideals. Being publicly traded means they will lay off people if it’s best for the shareholder and that should be the expectation for everyone involved.
They have 113 drugs and vaccines in their pipeline. I think they have more than enough candidates out to get to market. 6 vaccines in phase 3 development.
pipeline heavily influences stock price, it is always talked about on investor calls.
stock price is also about a lot more than just pipeline. pfizer cut their projections by $9 billion because they way overestimated demand for their covid drugs.
Large cuts 100% would happen even if the company was private
Maybe, but prior to 1982 you couldn't just buy back vast amounts of your own stock. So you done other things with the money like paying out taxable dividends or investing in R&D.
I feel like we’re watching a giant eat itself inside out. These financial practices are getting ridiculous. This has to somehow stunt innovation across the board, right?
This is happening in the ops side - the previous cost cutting was more focused on R&D and business. Looking at the portfolio, cutting products as well as supply chain cost reduction. Plans to be solidified (estimated) by end of 2024 with implementation through end of 2026 so the cost savings will be on the books in 2027 fiscal year. Lots of offshoring to cheaper labor markets whenever possible. Very possible mfg sites will be sold off/closed as they realign the portfolio based on capabilities at the site. Another reorganization of groups/leadership to “streamline”. And yes, this is absolutely to try and move the needle on the stock price. They aren’t even pretending it’s not - came out and said that investors need to be happy and this is the area where they are most unhappy about the company right now.
Pfizer has been doing this for decades. It’s their business model - acquire, get the products, when revenue falls, cut people and sites.
Dont take it personally, just look out for yourself.
Anchor brand for every therapeutic area is going off patent in ~2027 timeframe
Oncology: Ibrance (30% of oncology)
I&I: Xeljanz (40%+)
RD: Vyndaquel (50%+)
Primary: Eliquis (30%)
More than likely streamlined commercial layoffs and then ongoing consolidation of the headcount from the acquisition of Seagen. [More info here](https://www.biopharmadive.com/news/pfizer-cost-cuts-spending-cogs-restructuring/716905/)
The C19 vaccine sales have plummeted, along with other patent expiry, streamlining legacy business of other units under their umbrella. Internally this has been known for awhile but it still will be massive.
The optimistic to the point of almost mentally ill will say none of this is important. The insensitive will point out “well I still have a job”. The sane and bright are making career transition backup plans because at this rate, the next few years are going to be grim.
Well, applying for positions in oil and gas as well as food science are not working well for me in the Bay Area. I’m not succeeding getting a sales job recently but admittedly there are better people for that. I’ve applied for plenty of lower level roles in biotech but we all know that doesn’t work so well. This field is regimented almost to the point of mental illness. NOOO you can’t go from SRA lab assistant because I’m too fckn OCD to hire someone at a much lower level or I’m scared they will leave or oh no, what if they know more than me….
Yeah that's fairly accurate. The same is also true to try and broaden your area from biotech. I'm in manufacturing and somehow other job fields treat skills in biotech as non transferable. I tried to apply to more traditional areas of manufacturing and never even got a interview.
I missed half the town hall meeting but I saw there are going to be questions answered tomorrow. I'm wondering what sites may close and how many people are affected by this. Its hard to believe to have to go through a 4th layoff now.
They announced one-time costs related to the initial stage of cuts will be $1.7 billion, which includes severance pay. Layoffs in the targeted areas will likely be pretty heavy.
You would probably know best if you’re working there but I had a friend tell me they were told there would no relocating this year (might have been through 2025). The wording seemed to indicate short term is ok but long term you will probably be sent east.
Gonna go ahead and say no based on what I've heard at the site - in 2024? Some PGS folks may still get cut. By 2027? Would be surprised if they don't sell North Creek and cut most of development work at CP. They may keep Research for the pipeline... that's only my personal opinion but I am starting to think about a backup plan
I would imagine this will be pretty rough. Huge amounts of layoffs and probably a site closing or being sold off. They are looking for some big savings.
Depends on your outlook I suppose. This 1.5 billion in cuts is specific to their global manufacturing network, so that is a pretty big double whammy for that organization after getting through the corporate wide 4 billion in cuts.
Cut $2.5 billion dollars of "worker-related" costs. And a $1 billion dollar stock buyback.... I was joking, but just looked it up and they are doing a $5 billion accelerated stock buyback...
I don't work in biotech/pharma and I don't know much about business. But from an outside perspective it almost seems like the stock price is more important than the pipeline. Obviously within reason, if the pipeline was to affect the stock price then remedial action would have to be urgently taken.
Sure, many people will lose their jobs, but won't someone think of the poor shareholders???
“Some of you will lose your jobs, BUT: that is a sacrifice I am willing to make!”
Id happily be a shareholder! If I could get a job and afford some shares to hold...
I mean, it’s a publicly traded company. It’s their fiduciary duty to do what’s best for shareholder value. That’s the agreement for buying and investing in a publicly traded company. If you don’t wish to be under that sort of dynamic, work for a private company that may have different ideals. Being publicly traded means they will lay off people if it’s best for the shareholder and that should be the expectation for everyone involved.
Almost all medium/large pharma companies are publicly owned
Because the leadership with the most stake would like some money in case things don’t work.
Ding, ding! We have a winner!
They have 113 drugs and vaccines in their pipeline. I think they have more than enough candidates out to get to market. 6 vaccines in phase 3 development.
That's a fair comment, I think.
This sounds like any publicly traded company rgardless ofth industry.
pipeline heavily influences stock price, it is always talked about on investor calls. stock price is also about a lot more than just pipeline. pfizer cut their projections by $9 billion because they way overestimated demand for their covid drugs. Large cuts 100% would happen even if the company was private
Always has been
Maybe, but prior to 1982 you couldn't just buy back vast amounts of your own stock. So you done other things with the money like paying out taxable dividends or investing in R&D.
All incentives are for quick profit/turnaround. Stock buybacks can suck a pipette tip
I feel like we’re watching a giant eat itself inside out. These financial practices are getting ridiculous. This has to somehow stunt innovation across the board, right?
It’s a business model that relies on big returns for investors. Don’t fight it. It’s not personal. Look out for yourself first.
But at least the shareholders dividends were not cut….
where did you see $5b buyback news?
This is happening in the ops side - the previous cost cutting was more focused on R&D and business. Looking at the portfolio, cutting products as well as supply chain cost reduction. Plans to be solidified (estimated) by end of 2024 with implementation through end of 2026 so the cost savings will be on the books in 2027 fiscal year. Lots of offshoring to cheaper labor markets whenever possible. Very possible mfg sites will be sold off/closed as they realign the portfolio based on capabilities at the site. Another reorganization of groups/leadership to “streamline”. And yes, this is absolutely to try and move the needle on the stock price. They aren’t even pretending it’s not - came out and said that investors need to be happy and this is the area where they are most unhappy about the company right now.
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I was going to say cutting something else regarding the CEO. But that works too.
~~Cost cutting program~~ Layoffs. There fixed it.
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Pfizer has been doing this for decades. It’s their business model - acquire, get the products, when revenue falls, cut people and sites. Dont take it personally, just look out for yourself.
What do you mean by that? Like international branch offices?
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Anchor brand for every therapeutic area is going off patent in ~2027 timeframe Oncology: Ibrance (30% of oncology) I&I: Xeljanz (40%+) RD: Vyndaquel (50%+) Primary: Eliquis (30%)
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your profile pic is so sick
RD was eliminated last year for the most part.
yeah it's going to get ugly if their golden goose doesn't drop several blockbuster sized eggs
More than likely streamlined commercial layoffs and then ongoing consolidation of the headcount from the acquisition of Seagen. [More info here](https://www.biopharmadive.com/news/pfizer-cost-cuts-spending-cogs-restructuring/716905/) The C19 vaccine sales have plummeted, along with other patent expiry, streamlining legacy business of other units under their umbrella. Internally this has been known for awhile but it still will be massive.
This is like the 3rd or 4th cost cutting announcement Pfizer made in the last 2 years.
The optimistic to the point of almost mentally ill will say none of this is important. The insensitive will point out “well I still have a job”. The sane and bright are making career transition backup plans because at this rate, the next few years are going to be grim.
What is your career transition plan? I’d love to get some ideas.
Well, applying for positions in oil and gas as well as food science are not working well for me in the Bay Area. I’m not succeeding getting a sales job recently but admittedly there are better people for that. I’ve applied for plenty of lower level roles in biotech but we all know that doesn’t work so well. This field is regimented almost to the point of mental illness. NOOO you can’t go from SRA lab assistant because I’m too fckn OCD to hire someone at a much lower level or I’m scared they will leave or oh no, what if they know more than me….
Oh! So true about the regimented part!
Yeah that's fairly accurate. The same is also true to try and broaden your area from biotech. I'm in manufacturing and somehow other job fields treat skills in biotech as non transferable. I tried to apply to more traditional areas of manufacturing and never even got a interview.
I so, so desperately want you to be wrong :(
So do I.
Get ready to get fucked.
That Times 100 in healthcare is aging really well.
I missed half the town hall meeting but I saw there are going to be questions answered tomorrow. I'm wondering what sites may close and how many people are affected by this. Its hard to believe to have to go through a 4th layoff now.
Ask about a severance package
Nah ill be ok thanks though
They announced one-time costs related to the initial stage of cuts will be $1.7 billion, which includes severance pay. Layoffs in the targeted areas will likely be pretty heavy.
Is Bothell, WA Pfizer (former Seagen) site safe? After they backed out of Everett, I've been a little worried about my job security.
You would probably know best if you’re working there but I had a friend tell me they were told there would no relocating this year (might have been through 2025). The wording seemed to indicate short term is ok but long term you will probably be sent east.
I wil have to go back and listen to it, I thought they were saying cutting down on traveling. I didn't hear about the relocation.
If you look historically at pfizer aquisition sites...no
Gonna go ahead and say no based on what I've heard at the site - in 2024? Some PGS folks may still get cut. By 2027? Would be surprised if they don't sell North Creek and cut most of development work at CP. They may keep Research for the pipeline... that's only my personal opinion but I am starting to think about a backup plan
I heard it’s in supply chain / manufacturing. Middle managers are already aware from what I have learned
I’m wondering how Andover will fair
Worse than you can ever fathom
Seattle Genetics to the rescue!!
I was just going to ask, do they have any other sites left to close?
Lol I don't think so...
Ikr
I would imagine this will be pretty rough. Huge amounts of layoffs and probably a site closing or being sold off. They are looking for some big savings.
But this is only 1.5B vs 4B earlier this year? I imagine it to be less intense…
Depends on your outlook I suppose. This 1.5 billion in cuts is specific to their global manufacturing network, so that is a pretty big double whammy for that organization after getting through the corporate wide 4 billion in cuts.
DMD manufacturing might take a heavy hit 😆.
most have left already
Most? Why not everyone? I wonder how many bodies have to hit the floor before they drop an entire program. Lol apparently it's more than 2.