The Swiss Pharmaceutical Company, Novartis, announced last Tuesday a major job and cost cutting program as the company's third quarter net profit was a lot lower than they expected.
The progarm will consist of a loss of 2000 jobs, mostly in Switzerland and the US, and the closing of sites in both Italy and Switzerland. However, 700 other lower cost positions in other countries will be created over the next five years.
Johnson & Johnson together with Novartis, has become and investigation target for the European Comission as they are suspected of possibly breaking antitrust rules that prevent generic players from entering a part of the Dutch drug market. Novartis has also been struggling with the fact that the Swiss Franc is becoming stronger and that the patent of some of its drugs is close to its end.
http://online.wsj.com/article/BT-CO-20111025-702183.html
Maria Durá Ballester
I feel like we havent yet looked into the laws that surround the pharmaceutical companies this would be a very interesting topic to look at and see if will affect out investment plan
ReplyDeleteIt seems like a lot of the negative news stories in the pharmaceutical industry have recently been about Johnson and Johnson. Is this in any way correlated to the large size of the company?
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