Bayer is planning to overhaul its R&D operations and considering new plans that could include job cuts and outsourcing.
A source “familiar with the company” told Reuters that the company hopes to free itself up enough financially so that it can consider acquisition of up-and-comers in biotech. Bayer would not comment on the prospect of job cuts or outsourcing.
But the source told Reuters that R&D operations are under review, which will be used to decide if drug testing services could be outsourced to contractors.
At the same time, analysts have pointed out that Bayer will now need to bolster its drug development pipeline to balance the company’s portfolio with the broad range of agriculture products brought onboard with its Monsanto acquisition.
Although Bayer has dozens of new medications in its pipelines, its drug unit has hit a few setbacks recently, including a disappointing trial for a treatment targeting an asbestos-linked cancer and a failed attempt to widen uses for another drug.