Orion announce measures to improve efficiency

Orion has announced measures to increase productivity and cost efficiency in its wholesale and distribution division. It will shut two of its distribution facilities in Finland and increase the capacity and working time of the other distribution facilities.

The company says that it is the latest in a series of measures to decrease costs as part of a drive to save approximately five million euros (?3.48 million) by 2007, including cuts in personnel across all areas of the Orion group. It cites the growth in generics and government-forced price cuts as causing reduced profitability and slower market growth rates in Finland and Sweden.

Orion’s board stressed that the cuts are purely down to market conditions and that they have nothing to do with the company’s demerger later this year. Last year the company announced plans to split into two separate companies: Orion Corporation and Oriola-KD Corporation. Orion will continue to produce and research pharmaceuticals, while Oriola-KD will be responsible for wholesale and distribution.

The group currently operates two bases in the UK ? a marketing division based in Newbury, Berkshire and a research and development facility in Nottingham which opened in 2001 and employs approximately 50 people.

Orion’s products include Comtess, for Parkinson’s disease, Tridestra for hormone replacement therapy and Simdax, a heart failure drug.

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