Bayer contemplating outsourcing more R&D as part of restructuring: Reuters

Bayer
Bayer is contemplating outsourcing more of its R&D as part of an overall restructuring plan, Reuters says. (Bayer)

Bayer is contemplating outsourcing more of its R&D as part of an overall restructuring plan, Reuters reported, citing the German pharma giant’s work council.

In a statement by the work council cited by the news agency, it said Werner Baumann, Bayer’s chief executive, told employees at the group’s Leverkusen headquarters that restructuring efforts were in process, including outsourcing.

“Werner Baumann spoke about the prospect of weaker growth at the pharmaceutical business and mentioned considerations that some expenditures on pharma research could be outsourced,” the group said in its statement.

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A Bayer spokesman told Reuters that the CEO’s remarks referred to previously announced plans to increase outside collaborations.

Late last month, Reuters reported that a management review at the pharma giant could lead to job cuts and outsourcing its drug-testing services. 

Last year, Bayer began a major reorganization that saw it merge its pharma R&D unit into one division that combined all its R&D activities for therapeutic areas including cardiology, gynecology, ophthalmology, hematology and oncology research. The company is anticipating revenue declines from some top drugs coming off patent in coming years and more competition for other drugs in its repertoire.

It’s been reported that as many as 1,000 jobs could be at stake as Bayer reviews its research sites.

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