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, without undermining the relationship, and full legal transparency for all stakeholders, especially given the heightened regulatory and reputational risks in the pharmaceutical sector.

The project was comprehensive in scope and extended well beyond employment law. In parallel, the ALRUD team assisted in establishing effective communication with public authorities, the pharmaceutical community, and Lundbeck’s counterparties, and supported the implementation of changes to commercial contracts in Russia and the CIS. In essence, the engagement involved legal support of a business transformation carried out in an environment of heightened regulatory sensitivity and increased public scrutiny of the market.

The project lasted more than six months and was completed with the best possible outcome for the client, ensuring the legal robustness 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 was about a very delicate balance. On the one hand, there was a need for a fundamental change to the operating model; on the other, a responsibility towards people, the market, and regulators. Our task was to ensure that the transformation was carried out in a calm, transparent, and controlled manner, without undermining business continuity. In such situations, employment law ceases to be a supporting function and becomes an integral part of a broader strategy aimed at preserving business resilience." Margarita Egiazarova