Biogen to Cut Roughly 11% of Workforce
Biotech cites launch of Alzheimer’s drug Leqembi as part of its new focus Biogen has seen revenue decline in recent years partly due to increased competition for its multiple-sclerosis drugs. Photo: Adam Glanzman/Bloomberg News By Peter Loftus July 25, 2023 9:26 am ET Biogen said it is eliminating about 1,000 jobs, or about 11% of its workforce, after the drugmaker’s new chief executive concluded it had too many costly drug-research projects that weren’t likely to generate big returns. The Cambridge, Mass.-based company said the cuts would help the company reduce its annual operating expenses by about $1 billion by 2025. The company had 8,725 employees at the end of last year. Of those savings, Biogen plans to invest about $300 million into new product launches
Biogen has seen revenue decline in recent years partly due to increased competition for its multiple-sclerosis drugs.
Photo: Adam Glanzman/Bloomberg News
Biogen said it is eliminating about 1,000 jobs, or about 11% of its workforce, after the drugmaker’s new chief executive concluded it had too many costly drug-research projects that weren’t likely to generate big returns.
The Cambridge, Mass.-based company said the cuts would help the company reduce its annual operating expenses by about $1 billion by 2025. The company had 8,725 employees at the end of last year.
Of those savings, Biogen plans to invest about $300 million into new product launches and remaining research and development programs.
One of the new products includes the Alzheimer’s disease treatment, Leqembi, with partner Eisai. Biogen said the launch of Leqembi is under way.
Biogen CEO Chris Viehbacher, who took over the company in November, said the company had been developing some high-risk, high-cost products, and it wants to narrow its focus to drugs with a higher probability of success.
“You have to be cost-efficient and you have to invest in growth,” Viehbacher said on a conference call with analysts. “And that is a very tricky exercise.”
Biogen, one of the oldest biotechnology companies, has seen revenue decline in recent years partly due to increased competition for its multiple-sclerosis drugs.
Write to Peter Loftus at [email protected]
What's Your Reaction?
