AbbVie to Cut Hundreds of Sales Jobs

Patent protection on its major heart drugs is expiring

   

jobless unemployment 630Sources tell Bloomberg that AbbVie (NYSE:ABBV) will lay off its entire heart drug sales team. The number of workers fired in the move is expected to be in the mid-hundreds.

This year, company is facing the expiration of patent protection for its Niaspan cholesterol drug, which generated sales of $911 million in 2012. In November, it lost patent protection for TriCor.

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With generic competition for its heart drugs rising due to patent expirations, the company is ditching its large sales force for those drugs. AbbVie is also re-focusing its development efforts away from cardiac medications toward speciality drugs.

AbbVie was spun off from Abbott Laboratories (NYSE:ABTat the beginning of this year. Abbott Laboratories (NYSE:ABT) retained its medical device, generic medication and diagnostics units. Rheumatoid arthritis drug Humira is AbbVie’s best selling drug, producing sales of $7.93 billion in 2012.

Shares of AbbVie fell about 2% in Wednesday morning trading, while Abbott Laboratories shares climbed fractionally.


Article printed from InvestorPlace Media, http://investorplace.com/2013/04/abbvie-to-cut-hundreds-of-sales-jobs/.

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