Biogen Inc mentioned on Tuesday it expects to slash about 1,000 jobs, or 11% of its workforce, in a recent spherical of cost-cutting because it seems to be to the launch of a brand new Alzheimer’s drug to assist it return to progress.
The firm mentioned its prices are elevated in comparison with rivals and that it will concentrate on higher-growth merchandise such because the not too long ago accepted Alzheimer’s drug Leqembi, which it sells with companion Eisai.
“We had very prosperous times in the more recent history of the company. And we have seen a reversal of fortunes in some of those products,” mentioned CEO Christopher Viehbacher.
That reversal is highlighted by slumping gross sales of the U.S. drugmaker’s a number of sclerosis therapy Tecfidera within the face of cheaper generic rivals, whereas the way forward for its spinal muscular atrophy drug Spinraza seems to be much less sure because of intense competitors from rivals bought by Novartis and Roche .
“I don’t think we as a company have really made the changes in our … cost base to really reflect that transition,” Viehbacher mentioned after the job cuts had been introduced.
Biogen shares had been off 3% at $268.62 in early buying and selling, reversing premarket features.
A former Sanofi CEO, Viehbacher was employed in November to place the biotech again on a progress path and assist it get well from a sequence of missteps across the controversial Alzheimer’s drug Aduhelm that by no means gained traction.
“CEO Viehbacher is in a tough position, as it’s near impossible to cut to growth, but we appreciate the need to critically look at all current operations as Biogen evolves,” mentioned BMO Capital Markets analyst Evan Seigerman.
Biogen, which had 8,725 staff worldwide on the finish of 2022, expects to re-invest about $300 million from the brand new cost-cutting program into launches and analysis and improvement.
Excluding the re-investment, this system goals to cut back about $700 million in web working bills by 2025.
Biogen mentioned it will now concentrate on the Leqembi launch.
The U.S. Food and Drug Administration earlier this month granted customary approval to Leqembi, clearing the way in which for wider insurance coverage protection of the drug, but additionally flagging the danger of probably harmful mind swelling, a identified danger for Alzheimer’s medication in the identical class.
“There’s an awful lot of education around safety to make sure that the right patients are in place,” Viehbacher mentioned, including that talks with business insurers on protection for Leqembi had been going nicely.
Eisai and Biogen are additionally engaged on an injectable model of Leqembi, which might be simpler to manage than the present hour-long infusion at a specialised heart.
Regulatory filings for that model of the drug are anticipated to be accomplished by the top of the primary quarter of 2024, Biogen mentioned.
Source: www.anews.com.tr
