What’s the most scarier thing than hearing about layoffs for employees? Especially when you are already fighting with inflation. In 2023, the world got upside down and inflation reached a record.

On top of that hearing about layoffs is just unimaginable but most of the news turns out to be rumors at the end. But layoffs are not necessarily bad as they provide a new opportunity to grow more and develop new skill sets. However, it is essential to find out if reports about rumors are true or not.

Today, we are gonna slice up all the rumors about Alkermes Layoffs and see if they are really true. We crawl all over the internet to find the truth about layoffs tales. But there’s more, we are gonna let you know the financial conditions and latest news about Alkermes.

Alkermes Layoffs 2023

It is good news that there have been no publicly recorded Alkermes layoffs in 2023. However, the company has laid off employees several times in the past.

Unfortunately yes, there were several layoffs in the past that were made due to harsh conditions in order to cut costs and grow further. Let’s look into Alkermes Layoffs:

In 2019, Alkermes announced the termination of 160 employees, citing the need to cut costs and focus on its growth strategy. During this tenure. Alkermes also stopped hiring new hiring employees. According to a biopharma expert, firing these many employees will cost around $13 million to $15 million in termination and other related costs.

In 2018, there was another layoff of 122 hard-working employees from all departments. In this layoff, Alkermese did not spare any department not even research and development. The company did not provide any specific reason for the layoffs, but they came at a time when it faced financial challenges.

The layoffs at Alkermes were a difficult time for the company and its employees. 

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Reason Behind Alkermes Layoffs 

Alkermes has announced layoffs for several reasons, including:

  • Financial Loss: Alkermes has been struggling financially for some time, losing over $165 million in 2019. The layoffs are an attempt to cut costs and improve the company’s financial situation.
  • New Strategy: Alkermes is also undergoing a strategic shift, focusing on developing new drugs for rare diseases. The layoffs are part of this shift, as Alkermes is looking to reduce its workforce in areas unrelated to its new strategy.
  • Industry Situation: The pharmaceutical industry faces several challenges, including rising costs and increased competition. The layoffs are a sign that Alkermes is facing these challenges head-on and is taking steps to ensure its long-term success.

Plus, Alkermes has also been facing pressure from activist investors to improve its performance. The layoffs are likely to appease these investors and show that Alkermes is taking steps to address its problems.

However, the layoffs are a difficult decision for Alkermes, but they are necessary to ensure the company’s long-term success. 

The company is committed to providing its employees with severance packages and outplacement services to help them through this difficult time.

What Does Alkermes Do?

Alkermes Layoffs
Alkermes Layoffs

Akermes is a pharmaceutical company founded in 1987 by Micheal which merged with Elan Drug Technologies in September 2021. Akermes is well known for its medication for serious and chronic diseases.

This company provides over 20 medications for several diseases like schizophrenia, depression, addiction, and diabetes mellitus. Alkermes has several physical spaces in the United States and Ireland. They have one office in Dublin and a Research and Development Center in Waltham, Massachusetts.

Akermes Clashes with Sarissa Investor 

Akermes is a public corporation, meaning that it is owned by its shareholders. Shareholders are individuals who hold shares in a corporation. They can buy and sell these shares on the stock exchange. 

The more shares a shareholder owns, the more control they have over the company. Akermes’ shareholders elect a board of directors, who are responsible for making decisions about the company. The board of directors hires a CEO, who is responsible for managing the company daily.

Sarissa which owns $400 million worth of stock ultimately means 8.5% of the company, sent a letter to other shareholders for the company’s transformation. The “Transformation” means to increase the company’s value as Sarissa thinks the company is undervalued.

An arbitration panel eventually ruled in Akermes’ favor, allowing them to terminate their license agreement with Johnson & Johnson for Crystalnano technology. This decision resulted in a significant increase in Akermes’ revenue, which is now projected to be between $1.55 billion and $1.68 billion, up from $425 million.

Affect of Layoffs on Alkermes’ Operations

The recent reduction in Alkermes’ workforce, which saw the departure of 160 employees, including critical research and development staff, has undoubtedly impacted the company’s operations. 

While these layoffs were part of a broader cost-cutting strategy, it is essential to consider the potential benefits and challenges they bring to Alkermes’ daily activities.

Reduced Workforce and Productivity:

With fewer hands on deck, there’s a genuine concern about decreased productivity within the company. The loss of talented and brainy research and development staff could potentially slow down the process of discovering and developing new drugs. 

The ability to innovate and bring new treatments to market may face roadblocks, requiring the remaining team to be exceptionally creative and efficient.

Cost-Cutting:

While the layoffs are a cause for concern, they are not necessarily a sign that Alkermes is in trouble. The layoffs could be seen as a strategic move to reduce costs and streamline operations. Alkermes hopes to become more efficient and improve its profitability by reducing the workforce. 

This financial restructuring is similar to a game of corporate chess, where resources are shifted, priorities are reevaluated, and the focus is redirected toward the most promising avenues of growth and profitability.

Human Element and Employee Morale:

It is critical to consider the human impact of layoffs. They can have a significant impact on employee morale and the overall work environment. The remaining employees may experience increased workloads and job insecurity, which, if not addressed effectively, could lead to a decrease in motivation and job satisfaction. 

Alkermes must proactively address these concerns by maintaining a positive work environment and ensuring their talented team remains motivated and committed to the company’s goals.

FAQs

Does Alkermes Get Government Funding?

In short, Alkermes may receive government funding, but the specific sources and amounts can vary depending on the company’s projects and research initiatives. More information can be found on the company’s website or by contacting investor relations.

Does Alkermes Manufacture Bydureon?

No, Alkermes does not manufacture Bydureon. Bydureon is a medication used to treat type 2 diabetes, and it is actually manufactured by a different pharmaceutical company, AstraZeneca. Alkermes specializes in the development and manufacturing of pharmaceutical products.

However, their focus is primarily on medications for central nervous system disorders and other therapeutic areas, not diabetes-related drugs like Bydureon.

Is Alkermes a Good Company to Work For?

Whether Alkermes is a good company to work for depends on individual preferences. Consider company culture, work-life balance, job opportunities, benefits, and career goals. Research employee reviews and assess company values before making a decision.

What Does Alkermes Do?

Alkermes is a biopharmaceutical company that focuses on the development and manufacturing of medications for various therapeutic areas. 

Their primary areas of expertise include the development of drugs for central nervous system disorders, such as schizophrenia, bipolar disorder, and addiction. They are known for their innovative drug delivery technologies, including extended-release formulations.

The company is involved in various stages of drug development, from research and preclinical studies to clinical trials and, if successful, the commercialization of pharmaceutical products. Alkermes aims to address unmet medical needs and improve patient outcomes by creating novel drug treatments and delivery methods.

What Drugs Does Alkermes Make?

Alkermes has been involved in the development and manufacturing of several pharmaceutical products across different therapeutic areas. Some of the notable drugs and formulations associated with Alkermes include:

  • Vivitrol: A long-acting, injectable medication used for the treatment of alcohol dependence and opioid use disorder.
  • Aristada: An extended-release injectable medication for the treatment of schizophrenia.
  • Risperdal Consta: An extended-release injectable formulation of risperidone used to treat schizophrenia and bipolar disorder.
  • Bydureon BCise: An extended-release injectable formulation of exenatide used in the treatment of type 2 diabetes (Note: Alkermes was involved in developing the Bydureon technology, but the medication is manufactured by AstraZeneca, as mentioned earlier).

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