The pharmaceutical industry experienced a tumultuous first half of the year as Il Dong Pharmaceuticals and the American company MSD (Merck) underwent significant restructuring. Now, Teva Handok has revealed its plans for workforce reduction in the second half of the year.

According to industry insiders on October 13th, Teva Handok will be accepting voluntary retirement (ERP) applications until the end of October. Teva Handok, established in 2013 through a joint investment between the global pharmaceutical company Teva and South Korean pharmaceutical company Handok, currently employs approximately 70 individuals. The company's product range includes 'Fentora buccal,' a narcotic pain reliever, 'Nuvigil,' a narcolepsy medication, 'Lonquex Pre-filled Syringe,' used in neutropenia treatment, 'Ajovy,' a migraine medication, and 'Cinqair,' an asthma therapy.

Despite its reputation as a leading global generic pharmaceutical company, Teva Handok has faced challenges since its inception. However, after entering the South Korean market in 2018, it achieved profitability within six years. The company's revenue began at $20.2 million in 2018, increased to $23.3 million in 2019, experienced a decline to $21.9 million in 2020, and further dropped to $19.8 million in 2021. Fortunately, it made a recovery last year, reaching the $22 million mark once again.

This restructuring aligns with directives from the global headquarters. In its Q2 financial results in August, Teva announced a 2% increase in revenue, reaching $3.878 billion compared to the same period the previous year. However, it also reported a net loss of -$863 million, marking a significant 271.98% decrease compared to the same period the previous year. This decision is regarded as part of the company's efforts to enhance its overall financial structure.

Earlier in the year, Il Dong Pharmaceuticals and MSD also underwent restructuring efforts in the first half. Sandoz Korea, after two decades of operations in South Korea, withdrew from the market, leading to job losses for its employees.

Il Dong Pharmaceuticals reduced its executive team by over 20% and offered voluntary retirement to senior executives. MSD restructured its General Medicine (GM) division, transferring rights to products like Januvia to Dong-A Pharmaceutical and implementing a comprehensive Employee Retirement Program (ERP). The GM division ceased operations on July 31st. Additionally, Sandoz Korea's exit from the market resulted in the departure of all 20 of its employees.