Biogen, a pharmaceutical company, is undergoing a fresh wave of layoffs, with a targeted reduction of 1,000 positions following last year’s cut of nearly 900 jobs. The recent round of job cuts was initiated this Thursday, with affected employees being informed gradually. The timing for most notifications is set for the end of September, varying according to job roles and geographical regions.
These layoffs are a component of Biogen’s larger downsizing strategy, introduced in late July, aimed at streamlining their workforce by 1,000 employees, thereby achieving annual savings of $700 million. The move arrives amidst Biogen’s ongoing challenges, including the setback of its Alzheimer’s drug Aduhelm and a decline in its flagship multiple sclerosis business.
Simultaneously, Biogen is embarking on a $7.3 billion acquisition of Reata Pharmaceuticals, a specialist in rare diseases. This acquisition will bring Biogen the FDA-approved drug Skyclarys, designed to treat the rare neurologic disorder Friedreich’s ataxia.
The specifics of the layoffs in terms of the exact number of employees and roles involved are yet to be confirmed. The restructuring is described as a “global” effort that spans across the entire organization, according to a Biogen spokesperson.
The biotech community has rallied on platforms like LinkedIn, offering support and job leads to impacted Biogen employees. Biogen’s CEO, Chris Viehbacher, has emphasized the necessity for a comprehensive redesign of the company to diversify into areas like rare diseases, immunology, and psychiatry.
Despite recent challenges, Biogen remains hopeful about its Alzheimer’s drug Leqembi, which has garnered full FDA approval and better Medicare reimbursement coverage compared to its predecessor Aduhelm. However, uncertainties persist due to the necessity of patient registry requirements.
While Biogen navigates these changes, it is also reported to be exploring options to exit the biosimilars market. This strategic evaluation aligns with the company’s broader efforts to position itself for growth and success amidst the evolving pharmaceutical landscape.
