Lundbeck Announces Major Restructuring, Exits 27 Markets and Lays Off 602 Employees

Danish pharmaceutical company Lundbeck has unveiled a significant restructuring plan, marking a substantial shift in its global operations. The move, part of the company's capital reallocation initiative, will see Lundbeck exit 27 markets and transition to a partnership model, resulting in the layoff of 602 employees.

Partnership Transition and Market Exit

Lundbeck will hand over operations in 27 markets to three major partners: Swixx Group, Zuellig Pharma, and NewBridge Pharmaceuticals. This transition, set to be completed by December 1, 2025, aims to ensure continued access to Lundbeck's medicines through trusted regional partners while discontinuing the company's commercial organizations in the affected countries.

Swixx Group will take on the largest share, managing 21 countries primarily in Eastern Europe and South America, including conflict-affected regions such as Russia, Ukraine, and Israel. Zuellig Pharma will oversee operations in four South Asian countries: Indonesia, Malaysia, the Philippines, and Singapore. NewBridge Pharmaceuticals will handle Saudi Arabia and the United Arab Emirates.

Financial Impact and Strategic Focus

The restructuring is expected to cost Lundbeck 390 million Danish kroner ($61 million), but the company maintains that this will not affect its 2025 guidance or midterm targets. The markets being transitioned accounted for 2.68 billion Danish kroner ($421 million), or 12% of Lundbeck's total revenue in 2024.

Lundbeck CEO Charl van Zyl emphasized the strategic importance of this move, stating, "This step is essential to building the commercial infrastructure that will sustain our long-term strategy and deepen our commitment to serving patients. By reducing complexity and shifting resources to the markets and brands with the greatest growth potential, we are focusing capital to accelerate progress on our strategic priorities—most notably our growing late-stage pipeline in neuro-rare and neuro-specialty diseases."

Employee Impact and Future Outlook

The restructuring will result in the departure of 602 Lundbeck employees from the affected territories. However, the company expects that the majority of these employees will have the opportunity to join the local partners, who value their knowledge and experience.

Following this transition, Lundbeck will maintain commercial teams in 22 countries. The company aims to achieve a mid-single-digit compound annual revenue growth rate from 2023 to 2027, excluding any M&A activities, and plans to reach an adjusted EBITDA margin of more than 30% by 2027.

This latest move follows Lundbeck's previous strategic decision to transfer U.S. rights to its depression drug Trintellix to partner Takeda. The company continues to focus on growing brands such as the CGRP migraine drug Vyepti and the Otsuka-partnered antipsychotic Rexulti, while advancing key R&D programs in neuro-rare and neuro-specialty diseases.