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Biogen to Cut Jobs
Biogen Idec(Boston, MA) said last Thursday thatit would lay off approximately 17% of its workforce to reduceannual operating costs by $200–300 million.
The downsizing will be part of a restructuring plan conceived afterreviews of business processes, geographic locations, and staffing. Cutswill be made at the managerial and staff level, and are expected toequateto approximately 650 jobs, mostly in the San Diego, California, area,and at thecompany's manufacturing operations at Research Triangle Park, NorthCarolina.
In addition, the company plans to sell its NICO clinical manufacturingplant in San Diego and property in Oceanside, California. Also on thechopping block is the psoriasis drug, "Amevive," which had revenue of$43million in 2004. Biogen expects the plan to take effect by the end ofthe year.
Biogen Idec said that it is considering using the additional funds fornew product opportunities and 'the acquisition of products andcompanies, as well as expanding collaborative research with academicinstitutions and teaching hospitals."
In related news, Biogen also announced that Michael Gilman, executivevice-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 hisplace in the interim.