(Boston, MA) said last Thursday that
it would lay off approximately 17% of its workforce to reduce
annual operating costs by $200–300 million.
The downsizing will be part of a restructuring plan conceived after reviews of business processes, geographic locations, and staffing. Cuts will be made at the managerial and staff level, and are expected to equate to approximately 650 jobs, mostly in the San Diego, California, area, and at the company's manufacturing operations at Research Triangle Park, North Carolina.
In addition, the company plans to sell its NICO clinical manufacturing plant in San Diego and property in Oceanside, California. Also on the chopping block is the psoriasis drug, "Amevive," which had revenue of $43 million in 2004. Biogen expects the plan to take effect by the end of the year.
Biogen Idec said that it is considering using the additional funds for new product opportunities and 'the acquisition of products and companies, as well as expanding collaborative research with academic institutions and teaching hospitals."
In related news, Biogen also announced that Michael Gilman, executive vice-president of research, is leaving the company, effective Nov. 8. Alphonse Galdes, vice-president of drug discovery, and Rainer Fuchs, vice-president of research informatics and operations, will take his place in the interim.