Generics, managed care, and consolidation driving pharmaceutical layoffs

Mergers, acquisitions, impending patent expiration, competition from generic drugs and a shift toward more managed care have thrown the pharmaceutical industry into a tailspin and big names are shedding workers by the thousands.

These fundamental industry shifts include contraction of large national sales forces, creating big layoffs but an equally big pool of potential HART Health franchisees.

For pharmaceutical industry employees “in transition,” taking a look at HART Health franchise opportunities makes sense. We manufacture, distribute and service workplace first aid kits and other common medical supplies, including over-the-counter pain relief, cold and flu treatments and digestive aids. We don’t have to worry about losing a big chunk of profits because our patent on a brand-name drug will soon expire.

Sanofi-Adventis, in contrast, soon will face generic competition for three of its top products – anticlotting medicines Lovenox and Plavix and cancer drug Taxotere. Those three drugs alone account for nearly 25 percent of the company’s $40 billion in annual sales, according to a story on Yahoo! Finance. AstraZeneca is expected to to lose patent protection soon on two key drugs: Armidex, a breast cancer therapy; and Pulmicort Respules, an asthma treatment.

Pharmaceutical firms are cutting their U.S. sales forces but building them up abroad to take advantage of newer, untapped markets. They are using information technology to streamline support functions. Drug firms will feel the pinch, too, as the focus on managed care dictates leaner operations across all aspects of health care service and product delivery.

One of the few sectors of the pharmaceutical industry not in decline is the manufacture and distribution of industrial first aid supplies. Companies in this niche are experiencing sales increases as employers spend more on preventative supplies in the workplace.

Photo Credit: Graur Razvan Ionut