Home Business Biogen to cut 1,000 jobs as focus turns to Alzheimer’s drug Leqembi launch

Biogen to cut 1,000 jobs as focus turns to Alzheimer’s drug Leqembi launch

0
Biogen to cut 1,000 jobs as focus turns to Alzheimer’s drug Leqembi launch

Biogen said it expects to eliminate roughly 1,000 positions to save money ahead of launching a new drug to treat Alzheimer’s disease

Investors are pinning their hopes on Leqembi, as the U.S. biotech company hopes to use the new treatment as a springboard for a return to growth, amid fierce competition from cheaper versions and rival drugs for the company’s multiple sclerosis and spinal muscular atrophy (SMA) treatments.

ALZHEIMER’S DRUG LEQEMBI: WHAT TO KNOW

The cost-cutting program is expected to reduce about $700 million in net operating expenses by 2025, Biogen said on Tuesday. At the end of 2022, the company had 8,725 employees worldwide.

Signage outside the Biogen Inc. office in the Kendall Square neighborhood of Cambridge, Massachusetts, on Sept. 6, 2022. (Adam Glanzman/Bloomberg via Getty Images)

Biogen CEO Christopher Viehbacher said in a statement that the business “is in transition.”

“While we will be making significant investments in our newly prioritized pipeline and new product launches, we will also need to invest less in other areas,” he said. “With these changes, I believe that Biogen will be better positioned to maximize its growth opportunities going forward.”

MERCK BATTLES BIDEN’S DRUG PRICE SCHEME: ‘RADICAL CENTRAL-PLANNING’ IS ‘TANTAMOUNT TO EXTORTION’

In April, the company said it would pause or discontinue at least four studies of experimental drugs to focus on more lucrative options including the Leqembi launch while cutting costs.

In early July, the Food and Drug Administration granted a standard approval to Leqembi, which Biogen sells with Japan’s Eisai, clearing the way for wider insurance coverage.

However, Biogen has said it expects costs related to the launch are likely to offset “modest” sales this year.

DEATH TOLL RISES IN FUNGAL MENINGITIS OUTBREAK TIED TO PROCEDURES IN MEXICO

In the second quarter, the company earned $4.02 per share on an adjusted basis, compared with estimates of $3.77.

CLICK HERE TO READ MORE ON FOX BUSINESS    

Reuters contributed to this report.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here