(AOF) – The American pharmaceutical laboratory Viatris is expected to fall in pre-market trading on Wall Street after announcing Friday that its president since 2020, Rajiv Malik, will retire as director of the company as of April 1, 2024 Former president of the Mylan laboratory (2007-2020) he played a “key role” in the merger of this company with Viatris and Upjohn in 2020. “It has been a true privilege to know and work alongside Rajiv over the past year,” said Scott A. Smith, CEO of Viatris.
“I am also extremely grateful that as we continue on our path to implementing Phase 2 of our strategic plan in 2024, his immense skills and experience will remain available to me as I continue to build my leadership team for the future”, he adds, regarding Rajiv Malik’s decision to keep his place on the board of directors.
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Biotechs put to the test
These companies are suffering from a much less favorable economic cycle, which is reflected in particular by a drop in venture capital financing of start-ups. These companies are therefore obliged to carry out layoff plans. Added to this is a much more restrictive regulatory framework. First, in the United States, measures linked to the Inflation Reduction Act (IRA) could have a strong impact on the margins of stakeholders. Indeed, from 2026, the federal Medicare program will be able to renegotiate the price of drugs marketed for nine years (chemical) or 13 years (biological), with discounts that could range from 35 to 60% for biotechs. Likewise, in Europe, with the new drug regulations presented in Brussels in April, the duration of patent protection will be reduced if the innovative treatment is not marketed in all member countries within two years.