Amid a transformation effort under CEO Christophe Bourdon, Danish dermatology expert Leo Pharma is embarking on another round of layoffs and relocations.
As part of the “next step” in the company’s evolving strategy, Leo is closing and relocating up to 250 roles, a company spokesperson told Fierce Pharma over email.
Most jobs affected by the move are based in Leo’s home country of Denmark and span “all business areas,” the spokesperson said.
According to a report by MedWatch, around 200 roles will be cut, with the remaining 50 jobs expected to shift over to Poland.
The reorganization effort is expected to help Leo channel resources to key markets, reinvest in R&D and ensure continuity of care for those who depend on Leo’s dermatology offerings, the spokesperson explained.
The strategy is part of an ongoing effort to right the ship at Leo under CEO Bourdon, who was tapped to lead the 115-year-old Danish company in 2022. In a sign of the times, Leo reported in February that it had already slashed operating costs by 14% in 2023 while boosting revenues by 7%.
After arriving at Leo in April 2022, Bourdon immediately set out ambitions to dramatically reduce costs at the privately held company.
Following a previously stated plan to drop Leo’s head count by 1,000 and mothball its regenerative medicine innovation hub and tech centers in Asia and Boston, the company revealed it would reduce its workforce from 6,000 to 4,300.
For all of 2023, Leo charted revenue growth of 10% at constant currencies. North America proved to be Leo’s biggest market, delivering sales of 1.7 billion Danish kroner (about $249 million) last year.
Meanwhile, over the first half of 2024, Leo delivered overall revenue growth of 11%, reaching 6.37 billion kroner ($935 million).
After previously upgrading its guidance in August, Leo now expects an earnings margin between 6% to 8% for all of 2024, MedWatch noted in its report.
As a privately held company, Leo does not report exact sales figures for its drugs.
Leo acquired its chief commercial product, eczema treatment Adbry, from AstraZeneca for $115 million upfront in 2016. The drug is also approved in Europe, where it goes by the name Adtralza.
The company is also working to compete with Incyte in the topical JAK inhibitor market with delgocitinib, which last month won market authorization from the European Commission under the brand name Anzupgo to treat moderate to severe hand eczema. The drug is under FDA review in the same indication.