Sumitomo Cuts 62 Jobs in NYC Due to Company Consolidation
06 Jul 2023
AcquisitionDrug Approval
Pictured: New York City skyline/iStock, StockByM
Sumitomo Pharma America plans to lay off 62 employees from its New York City office previously owned by its subsidiary Sumitovant Biopharma, according to a WARN notice published July 3.
The company stated the layoffs are a result of its effort, previously announced in April, to combine its seven subsidiaries into one company dubbed Sumitomo Pharma America. The merger and name change went into effect on Saturday.
The July 3 filing is an amendment to a notice filed on April 20 that stated Sumitovant was cutting approximately 23 members of staff from the New York City office, effective July 20. In addition to the change in the total number of workers that will be laid off, the newest filing also pushed the layoff date for three employees to Oct. 5 and two others will now leave the company on July 31.
The merger includes seven subsidiaries in total: Sunovion Pharmaceuticals, Sumitomo Pharma America Holdings, Sumitomo Pharma Oncology, Sumitovant Biopharma, Myovant Sciences, Urovant Sciences and Enzyvant Therapeutics. Only one subsidiary, Spirovant Sciences, will continue to operate on its own, according to the April announcement.
Sumitomo stated the decision to merge the companies was spurred by the loss of exclusive rights for Latuda, which it called “one of the core products of the Sumitomo Pharma Group in the U.S.” According to Sumitomo’s 2022 financial report filed on June 27, total revenue for 2023 is forecasted to decrease by 119.7 billion yen (approximately $833.3 million) due to the “sheer magnitude of the loss of exclusivity for Latuda in the U.S.”
Latuda was previously owned by Sunovion Pharmaceuticals and is approved to treat schizophrenia and bipolar depression. The first generic versions of Latuda were launched on Feb. 20, 2023, by Accord Healthcare, Amneal Pharmaceuticals, Dr. Reddy’s Laboratories, MSN/Novadoz, Sun Pharmaceutical Industries, Alkem Laboratories/Ascend, Zydus Pharmaceuticals and Lupin Ltd.
Myovant Sciences, one of the subsidiaries that will be consolidated in the merger, was recently acquired by Sumitovant in March. The acquisition, announced in October 2022, was valued at approximately $1.7 billion.
Hiroshi Nomura, CEO of Sumitomo, stated the acquisition will best position the company to “accelerate the potential opportunities” for Orgovyx and Myfembree, for which Myovant had previously secured five regulatory approvals in the U.S. and Europe in hormone-sensitive oncology and women’s health, respectively.
Rosemary Scott is an editor at BioSpace, focusing on the job market and career development for professionals in the life sciences. You can reach her at rosemary.scott@biospace.com and on LinkedIn.
For more details,please visit the original website
The content of the article does not represent any opinions of Synapse and its affiliated companies. If there is any copyright infringement or error, please contact us, and we will deal with it within 24 hours.
Organizations
Indications
Targets
-Hot reports
Get started for free today!
Accelerate Strategic R&D decision making with Synapse, PatSnap’s AI-powered Connected Innovation Intelligence Platform Built for Life Sciences Professionals.
Start your data trial now!
Synapse data is also accessible to external entities via APIs or data packages. Leverages most recent intelligence information, enabling fullest potential.