Hua Xia Shi Bao·2025-10-24 02:32Core Insights - The global pharmaceutical industry is facing a significant downturn, with a total of 190 layoffs in the biopharmaceutical sector in the first three quarters of 2023, approaching the total of 192 expected for the entire year of 2024 [2][3] - Major companies like Merck and Novo Nordisk are leading this wave of layoffs, with Merck cutting 6,000 jobs and Novo Nordisk planning to lay off 9,000 employees, reflecting a broader industry trend [3][4] - The layoffs are driven by a combination of factors including patent cliffs, market competition, and inefficiencies in research and development [7][10] Layoff Trends - In Q3 2023, there were 62 layoffs in the global biopharmaceutical sector, with over 20,000 jobs cut in the second half of the year alone [2][3] - Merck's layoffs are part of a strategy to save $3 billion by 2027, while Novo Nordisk aims to save $1.26 billion by the end of 2026 [3] - Smaller companies are also affected, with companies like Biogen and Moderna announcing significant layoffs [4][5] Regional Focus: China - The Chinese market is experiencing unique adjustments, with companies like Gilead and Sumitomo Pharma restructuring their resources, while AstraZeneca is increasing its R&D investment by $2.5 billion [2][6] - The layoffs in China reflect a targeted approach, with Gilead confirming layoffs related to the integration of resources for a new HIV drug [4][6] - The Chinese market is becoming a critical area for innovation, with a significant increase in licensing deals for innovative drugs [6][10] Industry Dynamics - The underlying logic of the layoffs is attributed to pressures from patent expirations, low R&D efficiency, and intense market competition [7][10] - Companies are increasingly focusing on core therapeutic areas and optimizing resource allocation to adapt to changing market conditions [3][7] - The Chinese market is seen as a potential solution to these challenges, with lower clinical trial costs and a shift towards local innovation [7][10] Future Outlook - The ongoing layoffs are reshaping the industry landscape, with a notable talent migration from multinational companies to local firms in China [8] - The rise of CDMO (Contract Development and Manufacturing Organization) companies in China is facilitating the outsourcing of production by multinational firms [8] - The transformation of the industry is expected to continue, with China emerging as a core hub for innovation and development in the pharmaceutical sector [10]