Lilly to cut 8 percent of jobs in bid to cut costs

Updated: Thu, Sep 07, 2017
08:08 pm
Reuters
RELATED NEWS
Government may miss divestment target by Rs 20K cr: Report Government may miss divestment target by Rs 20K cr: Report
Oil prices edge up as OPEC says its crude output fell sharply in Dec Oil prices edge up as OPEC says its crude output fell sharply in Dec
Oil prices edge up as OPEC says its crude output fell sharply in December Oil prices edge up as OPEC says its crude output fell sharply in December
U.S. grand jury indicts four Audi managers in VW emissions probe U.S. grand jury indicts four Audi managers in VW emissions probe
Netflix forecast misses Wall Street view, shares dip Netflix forecast misses Wall Street view, shares dip

Eli Lilly and Co said on Thursday it would lay off about 8 percent of its employees as the drugmaker, which has suffered setbacks over the past year in the development of two potential blockbuster drugs, works to cut costs.

Lilly will cut about 3,500 positions around the world, resulting in yearly savings of about $500 million, beginning in 2018.

The company expects most of the cuts to come from a voluntary early-retirement program it is offering in the United States. It is also closing a plant in Iowa and research and development offices in New Jersey and China.

Lilly expects charges of about $1.2 billion before tax, or $0.80 per share after tax.

Shares of Lilly rose 48 cents, or 0.6 percent, to $80.99 in morning trading.

Lilly outlined in July a likely multi-year delay for its experimental rheumatoid arthritis drug baricitinib, after the U.S. Food and Drug Administration declined to approve the drug, calling for an additional clinical study.

That delay followed the failure of a trial in November of Lilly`s experimental Alzheimer`s treatment solanezumab, which the company had hoped would be the first medicine approved to slow progression of the disease.

The company said it has the potential to launch two new medicines by the end of 2018. The FDA is currently reviewing abemaciclib to treat advanced breast cancer.

Lilly officials were not available for immediate comment.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close