April 11 U.S. drugmaker Eli Lilly and Co
plans to layoff about 1,000 domestic sales representatives to
reduce costs, as it faces daunting generic competition, the Wall
Street Journal reported, citing a person familiar with the
The restructuring would affect about 30 percent of the
company's U.S. sales force and includes both full-time and
contract employees, the Journal reported.
At the end of this year Lilly's current biggest product, the
antidepressant Cymbalta, will lose patent protection while
copycat forms of its $1 billion-a-year Evista osteoporosis drug
are due to arrive in early 2014.
Cost controls partly helped Lilly beat Wall Street
expectations for the October-December quarter but profit fell on
competition from generic forms of its schizophrenia drug
During the quarter the Indianapolis-based drugmaker took a
$74.5 million charge on global restructuring, that included the
U.S. sales layoffs, a company spokesman told the paper. At the
time of the charge, the drugmaker did not specify how many
employees would be losing their jobs.
Lilly had forecast aggressive company wide cost controls for
2013 in January.
The layoffs and reorganization are scheduled to be completed
by July, the paper said.
Lilly could not be immediately reached for comment outside
regular U.S. business hours.