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Sumitomo Pharma To Cut 400 US Employees Amid Latuda LOE

Subsidiary CEO To Step Down

 
• By Lisa Takagi

After reducing 500 employees last year while reorganizing its subsidiaries in the US in the aftermath of patent expiration for its mainstay product Latuda, the Japanese firm has decided to move ahead with another rationalization affecting 400 employees there.

Sumitomo decided the second lay-off in its American subsidiary, which cut 40% of its employee in total.
Sumitomo decides on second round of US lay-offs after Latuda expiry • Source: Shutterstock

Sumitomo Pharma Co., Ltd. has decided to cut another 400 employees at its US subsidiary Sumitomo Pharma America, Inc. (SPMA) after already reducing headcount there by 500 in an earlier reorganization in July 2023.

The decision aims to streamline the Japanese firm's US operations following a recent negative global revenue performance after mainstay product Latuda (lurasidone)’s faced its first generic competitors in February 2023, which led the company to lose around half of its

Key Takeaways
  • Sumitomo Pharma America will reduce another 400 employees after laying off 500 people in 2023, which will cut 900 from its previous workforce of 2,200. 
  • The US subsidiary's CEO and chief medical officer will leave the company at the end of March

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