ALRUD aided Lundbeck during the transformation of its business model in Russia

The team at ALRUD's labor practice, led by Partner Margarita Egiazarova, took charge of a comprehensive project for the Danish pharmaceutical company Lundbeck — the total overhaul of its business model. The goal of the project was to maintain continuity of presence in the Russian market throughout a complete transformation of the company's operational and organizational structure.

The project called for the experts from ALRUD to develop and implement a solution to terminate employment relationships with the client's team — several dozen employees across the country. The process involved complex negotiations and careful structuring to ensure efficiency, environmental sustainability, and full legal transparency for all stakeholders, especially given the heightened regulatory and reputational risks in the pharmaceutical sector.

The project was truly comprehensive, going well beyond the scope of labor law. At the same time, the ALRUD team helped establish communication with government agencies, the pharmaceutical community, and Lundbeck's counterparties, while facilitating changes in commercial contracts in Russia and CIS member states. Indeed, the focus was on providing legal support for business transformation in a highly regulated environment and a market subject to significant public attention.

The project lasted more than six months and came to the best possible outcome for the client, ensuring the legal stability of Lundbeck's new operating model in the region.

The project team included Counsels Anastasia Petrova and Elena Novikova, Senior Associates Maria Nevezhina, Julia Brusova, and Natalia Bashmakova, Associates Anastasia Alenina and Anastasia Novichkova, and other ALRUD specialists.

This project revolves around the most delicate balance. On the one hand, there is a imperative to radically overhaul the business model; on the other, there is a responsibility to people, the market, and regulators. Our task was to carry out the transformation smoothly, transparently, and without losing control of the business. In such situations, labor law ceases to be a supporting function and becomes part of a comprehensive strategy for maintaining sustainability." Margarita Egiazarova