Ferring Pharmaceuticals Announces Global Restructuring and Job Cuts Amid Strategic Shift

Ferring Pharmaceuticals, a privately-held company headquartered in Switzerland, has unveiled plans for a significant restructuring effort that will result in up to 500 job losses worldwide. The move, announced on Tuesday, is part of a broader strategic initiative aimed at sharpening the company's focus and improving its operational flexibility.

New "Enterprise Model" to Drive Future Growth

At the heart of Ferring's transformation is the introduction of a new business model, dubbed the "Enterprise Model." This restructuring divides the company into two distinct units:

1. The "Core Business" unit, tasked with improving current products
2. The "Portfolio" unit, focused on future growth through clinical trials and pipeline development

This reorganization, which was rolled out last month, is designed to enhance Ferring's ability to develop novel therapies for patients. As part of this shift, the company has formed a new Science Medicine and Development Council to oversee clinical, regulatory, medical affairs, and pharmacovigilance operations.

Global Workforce Reduction and Cost Efficiencies

The announced job cuts represent approximately 7% of Ferring's global workforce, which currently stands at 7,500 employees across more than 50 countries. In addition to the layoffs, some roles may be subject to "geographic relocations" to better align with the company's strategic priorities.

Ferring has already informed workers in "relevant locations" about the impending job losses. This move follows earlier workforce reductions in the United States, including:

• 79 employees laid off at the U.S. headquarters in New Jersey in March 2024
• 55 employees let go in Minnesota in February 2024

The company states that these measures are necessary to "improve cost efficiencies" and enable "financial stability and sustainable growth" in line with the new Enterprise Model.

Financial Performance and Growth Drivers

Despite the restructuring, Ferring reported positive financial results for 2024, with an 8% year-on-year increase in sales, totaling €2.3 billion ($2.68 billion). The company attributes part of this success to cost reduction efforts, which resulted in a 3% year-on-year decrease in overall costs.

One of Ferring's key growth drivers is Adstiladrin, a gene therapy for high-risk non-muscle-invasive bladder cancer. Approved by the FDA in December 2022, Adstiladrin became the industry's first gene therapy in this indication. The product generated €70 million ($81 million) in sales last year and is expected to continue driving growth in 2024.

As Ferring Pharmaceuticals navigates this period of significant change, the industry will be watching closely to see how the new Enterprise Model and cost-cutting measures impact the company's ability to innovate and compete in the global pharmaceutical market.