New York-based Regeneron Pharmaceuticals Ltd. has announced that it will be releasing some staff as part of the restructuring of its partnership with French pharma firm Sanofi with which it shares drug sales territories.
Regeneron and Sanofi have had a long-term partnership for the rheumatoid arthritis drug Kevzara, cholesterol drug Praluent and medicine for eczema and asthma Dupixent.
In the third quarter of 2019, Regeneron earned revenue of Rs 2884.17cr from its partnership with Sanofi which accounted for 20% of its total revenues in the quarter.
Under the restructured deal, Sanofi is expected to hold global rights for the sales of Kevzara. Thus, Regeneron will have to shut its Kevzara unit and release all the staff working on it.
Praluent sales territories will also be re-distributed under the new deal with Regeneron having the US market all for itself and Sanofi having the rights for sales in all the other markets.
A WARN notice has already been issued to 15 employees at Regeneron’s New York Office that they will be released in February. WARN notice is a legal requirement in New York.
A spokeswoman for Regeneron said, “We will be reducing the size of our commercial and medical affairs teams related to the Kevzara and Praulent restructuring.” She emphasized that the employees affected by the decision could apply for other openings in the organization.
Regeneron’s Chief Financial Officer Robert Landry said that Dupixent had recorded most profitability and its sales structure would remain unaltered in the new deal.
The restructuring was carried out after Sanofi CEO Paul Hudson announced a major shift in Sanofi’s drug research strategy to bring it back on track.
Sanofi and Regeneron are expected to thrash out the details and finalize the deal in the first half of 2020. Regeneron believes that the changes will improve efficiency and streamline operations.