Bayer to finalize pharma team layoffs in 2024, exec says

Bayer, a German pharmaceutical giant, is undergoing a significant reorganization under the leadership of CEO Bill Anderson. The company is revamping its pharma commercial team, altering its structure, personnel, and operations. Christine Roth, the head of global commercialization at Bayer’s pharmaceutical division, discussed these changes in a recent interview. Her promotion is part of the broader restructuring effort, which officially began on June 1. This overhaul aims to reduce bureaucratic layers and streamline operations, with the new operating model termed “dynamic shared ownership” (DSO). The reorganization is expected to enhance agility and reduce managerial roles.

The transformation involves a shift from hierarchical functions to an organization that prioritizes customers and products. Roth highlighted that this change means managers will be less involved in daily operations and more focused on being visionaries, architects, catalysts, and coaches. Within the pharmaceutical unit, responsibilities across development, registration, commercialization, and lifecycle management are being reshaped. The regulatory and development functions are moving to the R&D organizations.

Bayer previously had product sales teams and parallel functional teams that often operated independently. The new model unifies these functions, such as marketing, market access, medical affairs, and patient advocacy, into a global capabilities group. Under this structure, product teams will set goals, and the rest of the organization, including Roth, will provide resources to achieve those goals.

The DSO model is still being refined, and Bayer aims to have employees settled into their new roles by the end of the year. To test the new system, Bayer has designated several “front-runner” teams, including the team for its prostate cancer drug Nubeqa. This drug is projected to reach peak sales of over €3 billion annually. The Nubeqa team is also involved in the phase 3 ARANOTE trial for metastatic hormone-sensitive prostate cancer, which recently reached primary completion.

Elinzanetant, a drug for hot flashes, is another key product under the new model. It has shown positive results in three phase 3 trials and is nearing an FDA filing. The DSO model has allowed the elinzanetant team to access digital resources and innovative marketing channels. Roth emphasized the importance of direct-to-consumer marketing for this launch.

Bayer is evaluating the DSO system in 90-day cycles. Employees are adapting to the new model, and Roth is focused on ensuring that they feel empowered and closer to the customer. She believes that getting through the initial challenges will help in making necessary adjustments.

In terms of Bayer’s oncology ambitions, the company aims to become a top oncology player. While last year’s goal was to reach $10 billion in oncology revenue by 2030, Roth now emphasizes that the target is flexible. Bayer's oncology pipeline includes early-stage projects from Vividion Therapeutics, as well as other programs like the HER2 tyrosine kinase inhibitor and a PSMA-targeted radioligand therapy. However, these are all in early stages of development.

The restructuring aims to balance between early-stage and later-stage assets. According to Roth, the DSO model will help advance early-stage programs faster. Bayer is also open to mergers and acquisitions to bolster its oncology portfolio, although it has yet to find the right target.

Overall, Bayer’s reorganization is a strategic move to become more customer-focused, agile, and efficient, with the DSO model playing a central role in this transformation.