Lundbeck plans re-structure to improve its ability to launch new medicines

H. Lundbeck A/S (Lundbeck) plans to further optimize its commercial structure to put the company in the best possible position to successfully launch new medicines. This will be achieved through a simplified commercial structure, increased alignment across countries and improved competencies and investments in areas such as market access.

This initiative follows Lundbeck’s establishment of a more flexible commercial organisation in Europe last year and is part of the company’s on-going effort to continuously optimize its business. Earlier initiatives include the Decisions Now programme and the optimizations of Lundbeck’s research and development activities.

As part of its plan, Lundbeck will divide its commercial operations into six regions: Europe, USA, Canada, Asia, Latin America and Middle East & Global Distribution. This reflects the global diversification of the company and ensures full focus on growth markets.

Furthermore Lundbeck plans to simplify the commercial structure in Europe by organizing its more than 30 affiliates in 10 strong business units. This will enhance Lundbeck’s ability to launch new medicines.

The proposed establishment of such business units in Europe will enable Lundbeck to improve competencies in areas such as market access, marketing and medical affairs. Furthermore activities will be aligned across countries, duplication of activities can be eliminated and the general complexity of the business can be minimized.

“We want the best possible set-up to ensure the transition of our product portfolio through successful launches of new medicines. With this plan we will have the focus, the structure and the competencies in place to achieve that”, says Ole Chrintz, Senior Vice President, International Markets and Europe at Lundbeck.

If the restructure is carried through it may regrettably lead to a reduction of 50-55 positions in Europe. Lundbeck has informed the company’s European and Danish Works Council about the restructuring plans.

Fit for the future

The plan to simplify the commercial structure is a cornerstone of a new change programme named Fit for the Future launched in Lundbeck today. The overall aim of the programme is to reduce complexity, increase organizational efficiency and free up resources to invest in Lundbeck’s many new medicines and global growth platform.

Further to the planned changes in Lundbeck’s commercial structure the Fit for the Future-programme includes initiatives to optimize and standardize administrative processes, reduce supply chain complexity, ensure even more effective execution of clinical trials, structure procurement and decrease spending on less critical activities.