Biogen to Cut Staff, Focus on Oral MS Drug
Biogen has announced a corporate restructuring scheme that will lead it to terminate a number of drug pipeline programs while cutting the workforce by 11% up to the end of this year. The required consultation processes in European countries where employees may be impacted is already in progress, it said.
Additionally, the biotechnology company plans to identify additional savings in non-labor expenses by the end of the year.
Several programs, including the Phase 3 trials for its Tecfidera in secondary progressive MS, the development of anti-TWEAK in lupus nephritis and certain activities in immunology and fibrosis research, are due to be discontinued.
With the measures, Biogen said it hopes to lower its annual operating expenses by around $250 million while reinvesting the savings in the oral version of treatment Tecfidera. Along with multiple sclerosis, it also wants to advance “high potential” drugs in the pipeline to treat Alzheimer’s disease and spinal muscular atrophy.
“We remain committed to maximizing the potential of our commercial portfolio, with a particular emphasis on Tecfidera,” said CEO George A. Scangos. He added that the company continues to see growth for the MS portfolio, driven by the uptake of oral Tecfidera in recently launched countries worldwide and the introduction of Plegridy, the drug approved for treating relapsing forms of MS, to new markets.
“The decision to reduce the company’s workforce was extremely difficult, but we believe these actions are necessary to fulfill our mission of bringing important new medicines to patients,” said Scangos.
Reflecting the restructuring plans, a change in its capital structure, and significant share repurchases, Biogen has updated its full year 2015 financial guidance. Sales revenue is forecast to increase by 8-9% compared to 2014, which the company said represents a “modest” increase against prior guidance.
