Delivering a financial turnaround of LEO Pharma
Ballerup – January 13: LEO Pharma is committed to being a global leader in medical dermatology by bringing innovative treatments to patients. To deliver on this commitment, we have been on a transformation journey the past years to become a more sustainable company and return a profit at the end of 2023. We have taken bold steps to change the way we work, including by changing our commercial footprint. On Thursday, January 12, 2023, we announced further actions to support profitability and drive growth and innovation.
Our key actions included to adjust our R&D strategy to pursue external innovation in R&D, to further optimizing our production set-up as well as our global support functions so that we become more agile and competitive as a company.
Delivering a winning, innovative portfolio based on a revised R&D strategy
Medical dermatology remains an attractive market for innovation-focused players like LEO Pharma, and, based on our revised strategy, LEO Pharma remains committed to developing first and/or best-in-class treatments across broad medical dermatology indications to enable differentiation.
To this end, we will need to develop the best available innovation, independently of whether this is accessed internally or externally. To achieve this, we are externalizing our innovation sourcing model in research and early development to become even more flexible in delivering therapeutics across orals, topicals and biologics.
This is a major shift for LEO Pharma and means that our early research and development organization will be significantly reduced and deliver clinical pipeline projects through strategic external partnerships. Our global R&D organization will focus to deliver the adjusted pipeline and further outsource and prioritize activities, while it will also remain a key priority to maintain a strong focus on our three late-stage assets Adtralza/Adbry, delgocitinib and IL-22R as well as ongoing pre-clinical programs.
New GLT area brings together Global Product Supply, CMC Design & Development and Global Procurement
We are further optiming our set-up by bringing our Global Product Supply, CMC Design and Development and Global Procurement functions together to form a new area in our Global Leadership Team (GLT) called Technical Development & Supply.
This will secure one clear single accountable GLT area responsible for transferring innovation from research stage into development and onto a commercially viable product provided to our commercial organizations.
A new Procurement and External Supply unit will be the single point of business contact towards our external partners with full delivery and end-to-end accountability.
Across the corporate functions, focus will be on further reducing costs and sizing teams to serve a smaller organization
Although these changes will make our organization stronger in the long term, they mean that we have had to say goodbye to around 300 colleagues. We thank them for their contributions in getting us this far in our transformation towards becoming a global leader in medical dermatology.
About LEO Pharma
LEO Pharma is a global company dedicated to advancing the standard of care for the benefit of people with skin conditions, their families and society. Founded in 1908 and majority owned by the LEO Foundation, LEO Pharma has devoted decades of research and development to advance the science of dermatology, and today, the company offers a wide range of therapies for all disease severities. LEO Pharma is headquartered in Denmark with a global team of 4,400 people, serving millions of patients across the world. In 2022, the company generated net sales of DKK 10.6 billion.