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5 mai 2008

Merck Is Cutting 1,200 Sales Reps

Battered by the drop in Vytorin and Zetia prescriptions, as well as the unexpected rejection of its follow-up Cordaptive cholesterol pill, the drugmaker is cutting still more jobs. This comes on top of a companywide reorganization that was begun in 2005 that has since involved eliminating approximately 8,100 positions.

"Merck is taking this step as part of our previously disclosed, continuing efforts to optimize our cost base and improve Merck’s effectiveness and efficiency across all aspects of our business as part of our Plan to Win strategy," Ken Frazier, president of the global human health unit, says in a statement.

"With eight successful launches of Merck products approved in the US since 2006 now behind us, and with an unexpected delay in a new product approval, we decided to accelerate the achievement of efficiencies we anticipate gaining as we transition to our new commercial model in the US."

The move follows similar steps taken by most of its rivals, which are also eliminating thousands of jobs, particularly among their sales teams. Wyeth, for instance, last week announced plans to also cut 1,200 jobs after previously announcing plans to cut 1,240 sales reps. As of last December, Merck had 59,800 employees worldwide.