Looking to bolster Sanofi's portfolio of marketed drugs and pipeline prospects, CEO Paul Hudson went on a dealmaking spree last year. That included the drugmaker's $1.9 billion buyout of Kadmon, where more than two dozen staffers are now losing their jobs.
In a New York State filing, Sanofi says it's laying off 25 Kadmon employees as it closes the site at 450 East 29th in New York City. That's the location of Kadmon's former headquarters, according to SEC records.
After the buyout and the "integration of resources, the business will be permanently closing," the filing says. The layoffs will start in July and continue through April 1, 2023.
A Sanofi representative confirmed that the company "decided to exit the Kadmon New York site" in the third quarter.
"Kadmon employees at that location have been notified and have an opportunity to apply for positions at Sanofi," he added. "Sanofi will be working with Kadmon employees to find suitable positions as appropriate.”
Sanofi shelled out $1.9 billion for Kadmon in September 2021 to get its hands on the transplant rejection med Rezurock. The companies closed the deal in November.
Even before the companies finalized their buyout, Kadmon warned about its employee situation. In a November filing, the company said its employees "may experience uncertainty about their roles or seniority following the acquisition."
"There can be no assurance that our employees, including key personnel, can be retained, or that we will be able to attract and retain employees to the same extent that we have previously been able to," Kadmon warned.
As of the end of 2020, Kadmon employed 127 people, an annual filing shows. That number included 70 in R&D, 27 in commercial operations and 30 in general and administrative roles. The drugmaker didn't update the headcount figure for the end of 2021 because it was purchased by Sanofi.
Sanofi, for its part, employed 95,442 people in 2021, a decline of nearly 4,000 from 2020. As part of his efforts to reshape the company, CEO Hudson has been on a cost-cutting campaign since 2019.