20% of LEO Pharma’s sizable production of own medicine will be outsourced to external contractors over the next five years in order to create a more flexible, cost-effective and high-performance organisation.
As part of LEO Pharma’s growth strategy, which was launched in October 2009, the company has now formulated a plan for future global production. According to the plan, LEO Pharma will increasingly depend on external production in order to live up to growth ambitions.
”Over the next five years, we aim to develop our production organisation from being a supply chain organisation to a supply network organisation,” says LEO Pharma’s Production Director John Mehlbye. ”We will increasingly outsource this area to partners with the necessary competences and in particular performance and quality we demand.”
A considerable amount of LEO Pharma’s future turnover is expected to come from new products and services. This will place considerable demands on the production organisation in terms of flexibility and adaptability. In the future, the company will increasingly use partners in production in order to launch new products without massive investment in additional production capacity at the six factories in Denmark, Ireland, France and Australia.
”Unfortunately the consequence is that we will close and outsource the sterile area in our large production of finished products in Ballerup over the past four years. As a result, around 150 positions are expected to be closed in line with the implementation of outsourcing,” says Gitte P. Aabo, LEO Pharma’s Chief Executive Officer.
”Closing the sterile department is one of the difficult decisions we have had to take in relation to our growth strategy. We are currently working closely with HR, trade union representatives and a liaison committee in order to ensure that all those affected are supported as best possible in finding a new job when the time comes – either in LEO Pharma or outside the company walls,” says Gitte P. Aabo.
For more information contact Mette Krogh, Communications Manager, +45 4188 9509, email@example.com
About LEO Pharma
Founded in 1908, LEO Pharma is an independent, research-based pharmaceutical company based in Ballerup near Copenhagen. LEO Pharma is wholly owned by the LEO Foundation and is one of the world’s leading companies within the treatment of dermatology (psoriasis, skin infections, eczema and actinic keratosis) as well as critical care (anticoagulation, nephrology and the supportive treatment in cancer). LEO Pharma develops, manufactures and markets competitive, safe and efficacious drugs globally. 96% of the group’s turnover is generated outside Denmark, where LEO Pharma’s products are sold in more than 100 countries. LEO Pharma has offices in 56 countries and employs more than 3,700 employees worldwide, 1,450 of which in Denmark.