AbbVie’s workforce↑ MSD↓ due to business restructuring

Employee number survey at 30 Korean subsidiaries of multinational pharmaceutical companies

Multinational pharmaceutical companies undergo business restructuring, resulting in rapid changes in employee numbers

AbbVie merges with Allergan... BMS, Merck, and Novo Nordisk expand their businesses, resulting in a sharp increase in employee numbers

MSD sees 200 fewer employees in 4 years due to Januvia sale, Pfizer, AZ launches ERP

Various factors, including the sale of drug rights, early retirement programs (ERP), and the launch of new drugs, have affected the number of employees at Korean subsidiaries of multinational pharmaceutical companies.

 

AbbVie Korea doubled its workforce over 4 years through the Allergan merger.

 

BMS Korea, Merck, and Novo Nordisk Korea saw significant increases in staff upon the launch of their innovative new drugs and business expansion.

 

MSD Korea had the largest number of employees as of last year, but this decreased by 200 in four years due to the sale of Januvia rights and the implementation of ERP.

 

Pfizer Korea, Janssen Korea, AstraZeneca Korea, and Novartis Korea also saw a decrease in the number of employees due to the adoption of ERP.

 

According to an analysis of the audit reports of 30 multinational pharmaceutical companies in Korea disclosed on the Financial Supervisory Service's electronic disclosure system on the 23rd, the total number of employees last year was 7,389, an increase of 68 from 7,321 the previous year.

 

Compared to 7,192 in 2020, this is an increase of 197 in four years.

 

The company with the largest increase in employees compared to 2020 was AbbVie Korea.

 

The number of employees at AbbVie Korea last year was 340, a 17 increase from the previous year.

 

The company's employee count rose significantly from 170 in 2020 to 323 in 2023.

 

AbbVie Korea acquired 100% of the shares of Allergan Korea on February 1, 2023.

 

On April 30 of the same year, it absorbed Allergan Korea, and from the following day, Allergan Korea's performance began to be reflected in AbbVie Korea's results.

 

The merger and acquisition at the headquarters level was carried out in 2019.

 

On June 25, 2019, AbbVie acquired Allergan for USD 63 billion (approximately KRW 73 trillion).

 

Allergan owns the original botulinum toxin product “Botox.” Merck, Novo Nordisk, and BMS Korea saw a significant increase in their number of employees with the launch of innovative new drugs.

 

BMS Korea surpassed 200 employees for the first time last year.

 

The company's workforce reached 209 employees last year, a 24 increase from the previous year.

 

The company has consistently expanded its workforce while supplying immunotherapy drugs such as Opdivo, heart failure treatment Camzyos, anticoagulant Eliquis, and leukemia drug Sprycel in Korea.

 

In addition, BMS Korea signed a joint promotion agreement with Yuhan Corporation last year for the psoriasis treatment of Sotyktu and the ulcerative colitis treatment of Zeposia.

 

As a result, the company established a new Immunology Sales Department and hired additional clinical team members, leading to an increase in the number of employees.

 

The number of employees at Merck Korea increased by 39.4% from 345 in 2020 to 481 last year.

 

This means that 136 new employees were hired over the past four years.

 

Looking at the numbers by year, the number of employees steadily increased from 360 in 2021 to 409 in 2022 and 444 in 2023, reflecting the company's strategy to expand its business in Korea.

 

Merck has achieved remarkable results in various fields, including infertility treatments and anticancer drugs.

 

In April last year, Merck's Pergoveris Inj for ovulation induction was granted reimbursement for infertility.

 

In addition, the company is expanding its business by supplying the non-small cell lung cancer treatment Tepmetko and the bladder cancer treatment Bavencio in Korea.

 

Novo Nordisk also showed a clear upward trend, increasing its number of employees from 169 in 2020 to 291 in 2024, which was a 72 increase.

 

This is believed to be related to the growth of GLP-1 (glucagon-like peptide-1) class obesity and diabetes treatments in the domestic market.

 

Novo Nordisk has launched not only GLP-1 new drugs containing liraglutide, such as Saxenda and Victoza but also diabetes drug Ozempic and obesity drug Wegovy containing semaglutide in the domestic market.

 

Wegovy, which entered the market in the fourth quarter of last year, surpassed KRW 60 billion in sales in just one quarter.

 

Sales right transfers, withdrawal from the Korean market, and ERP lead to layoffs On the other hand, some companies have reduced their workforce due to the impact of sales, withdrawal from the Korean market, and ERP.

 

Last year, MSD Korea had 505 employees, which was a 201 decrease from 2020.

 

The biggest factor affecting this reduction of workforce was the spin-off of Organon.

 

Organon was spun off from Korea MSD in 2021 and officially launched in June of the same year.

 

Organon sells chronic disease treatments such as Propecia for hair loss, Cozaar for hypertension, and Atorvastatin for dyslipidemia, which was previously sold by MSD.

 

MSD Korea has transferred the Januvia family to Chong Kun Dang and reorganized its chronic disease business division.

 

The company transferred the rights for Januvia (sitagliptin), Janumet (sitagliptin and metformin), Janumet XR (sitagliptin and metformin), and other Januvia family products, as well as the diabetes drugs Steglatro and Steglujan to Chong Kun Dang in May 2023.

 

At the same time, it closed down its General Medicine (GM) division.

 

The number of employees at Pfizer Korea decreased by 50 from 454 in 2023 to 404 last year.

 

The honorary retirement benefits paid last year amounted to KRW 5.33526 billion, a 279.9% increase from the previous year's KRW 1.4453 billion.

 

Pfizer carried out global restructuring in 2023 and last year.

 

This was due to a sharp decline in sales of vaccines and treatments such as Comirnaty and Paxlovid following the COVID-19 pandemic.

 

This decision also affected the reduction in staff at the Korean branch.

 

Novartis Korea had 466 employees last year, a decrease of 68 in the past four years.

 

Novartis underwent a large-scale restructuring at the headquarters level in 2022.

 

In response, Novartis Korea reorganized its respiratory division in 2022.

 

Novartis Korea's respiratory treatments include Enerzair, a triple combination asthma treatment, and Atectura, a once-daily fixed-dose combination medication.

 

Xolair, Novartis Korea's best-selling asthma treatment, was not included in the restructuring as it was an immune disease division product.

 

In addition, Novartis Korea's generic drug division, Sandoz, was spun off and then withdrawn from the Korean market in 2023.

 

In the same year, Novartis Korea began restructuring its portfolio by implementing ERP for its ophthalmology division.

 

AstraZeneca Korea is one of the companies that has experienced significant fluctuations in the number of employees.

 

The company's workforce increased by 18 employees from 393 in 2020 to 411 last year.

 

However, compared to 439 employees in 2023, last year's figure represents a decrease of 28 employees.

 

The increase in AstraZeneca Korea's workforce was attributed to its business expansion.

 

AstraZeneca acquired Alexion, a company specializing in the development of rare disease treatments, in 2020.

 

Alexion holds rare disease drugs Soliris and Ulotrimis, which are used for conditions such as paroxysmal nocturnal hemoglobinopathy and severe myasthenia gravis.

 

AstraZeneca Korea began domestic sales of the drugs in February 2023, leading to an increase in the number of employees in the rare disease division.

 

Meanwhile, the primary reason for the decrease in the number of employees at AstraZeneca Korea last year was the withdrawal of the SGLT-2 inhibitor-based diabetes treatment drug Forxiga from the Korean market.

 

The company implemented an ERP for the CVRM (Cardio Vascular Renal Metabolism) division, which previously housed the Forxiga sales department.