Pharmacolog is initiating a cost-saving program that will significantly reduce ongoing operating costs while streamlining the company organization to support existing customers and external distributors. The implementation of cost-reducing measures will start immediately and will be fully implemented by January 2024. At full effect, the measures will reduce operating costs by at least 35% compared to the operating costs of the full year 2022, this corresponds to a sum of at least SEK 10 million.
The background is that Pharmacolog’s direct sales efforts have not met the expectations of the company and its shareholders. As one of the first steps, Pharmacolog intends to considerably reduce the organization while retaining necessary competencies for driving and increasing sales through Pharmacolog’s distributor network and maintaining first-class support for the existing customer base. At the same time, further measures will be implemented in all areas on the group level, which will lead to overall lower costs.
Necessary steps immediately taken to perform the intended cost reductions may, inter alia, include negotiations with affected trade unions.
“With these measures now being implemented we will align our organization with our strategic direction and simultaneously protect our balance sheet. These are tough decisions to take but necessary in order to remain focused on the commercialization of our solutions for the benefit of our customers, partners, and shareholders.” says Lars Gusch, CEO of Pharmacolog.
This disclosure contains information that Pharmacolog is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 02-10-2023 09:35 CET.
Pharmacolog provides solutions and products that enhance work efficiency and safety when preparing injectable medication. Our goal is to help prevent medication errors and ensure maximum medication efficacy when treating patients with powerful yet potentially harmful injectable drugs. Pharmacolog’s products help staff at pharmacies and hospital wards minimize the risk of errors in the compounding process. Furthermore, by verifying that drugs and narcotics used in surgery have not been tampered with, our solutions also make a vital contribution to preventing drug diversion.