Biogen set to axe 650 jobs and focus on neurology
pharmafile | November 4, 2010 | News story | Research and Development, Sales and Marketing | Biogen, Rituxan, job cuts, pharma jobs
Biogen Idec is set to cut hundreds of jobs and refocus its R&D in an effort to cut costs by $300 million.
The US biotech firm will cut around 13% of its workforce, with the reductions mainly coming from axing its cardiovascular R&D and one of its larger sites in San Diego.
Its eastern Massachusetts sites in Waltham and Wellesley will be consolidated in Cambridge and Weston to further streamline their workforce.
The company will continue its efforts to reinvigorate growth of its MS drugs Avonex and Tysabri, which make up the majority of revenue.
Biogen said it expects to make annual savings of approximately $300 million after initial restructuring costs that would total around $115 million.
The changes at the company will also see Roche/Genentech, Biogen’s partner for its rheumatoid arthritis and blood cancer drug Rituxan, become solely responsible for the US sales and marketing of the drug.
As a result Biogen will cut its sales force that worked on marketing the blockbuster drug.
George Scangos, Biogen’s chief executive, told the Wall Street Journal: “The company spends a lot on R&D and doesn’t have a lot to show for it …We need to do better.”
In his official statement, Scangos set out the company’s transition: “Biogen Idec will be better off as a result of these actions. First, we will have increased focus. We have been operating in too many therapeutic areas and haven’t maximised our opportunities.
“We will now focus on a few areas where we can be among the best, and this starts with neurology. We have excellent R&D and commercial capabilities in neurology, and we will build from that strength.
“We will leverage our strengths in biologics manufacturing to bring forward our own projects as well as aggressively in-license projects in our target areas.
“Second, as a result of these actions, Biogen will be leaner, more nimble and more decisive. Importantly, the initiatives announced today will save more than $300 million annually and will position Biogen to accomplish great things in the future.”
Ben Adams
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