TRENTON, N.J. — Drugmakers beset by growing generic competition, few new blockbusters, drug safety concerns and pressure from insurers and government health programs to discount prices are cutting tens of thousands of jobs.
Nearly all of the country’s 10 largest pharmaceutical companies in the U.S. are restructuring, with some, such as Schering-Plough Corp., announcing plans to trim 10 percent or more of the workforce.
Since 2007, eight of the world’s biggest drugmakers have announced the elimination of more than 42,000 jobs; two other major companies have eliminated another 12,200 jobs in the last few years.
“There are a lot of things going on making this the perfect storm for the industry,” said Argus Research health care analyst Martha Freitag. “My sense is maybe we’re halfway through” the cost-cutting.
Analysts predict that 2011 and 2012 will be particularly rough years. Brand-name drugs totaling $40 billion in sales lose patent protection then, including the world’s top-selling medicine, Pfizer Inc.’s cholesterol-fighter Lipitor. Some drugmakers already are restructuring in anticipation of that.
