Biogen to cut 1,000 jobs to save costs as company prepares for Leqembi launch

Biogen connected Tuesday said it expects to cut astir 1,000 jobs, oregon astir 11% of its workforce, to prevention costs arsenic the biotech institution prepares to motorboat its recently approved Alzheimer's cause Leqembi.

Biogen had 8,725 employees worldwide arsenic of the extremity of past year. The layoffs are portion of the company's ongoing cost-cutting and reorganization plan, which besides involves shaving down its probe and improvement pipeline to prioritize Leqembi and different drugs. 

Biogen, successful its second-quarter net report, said the larger program is expected to make astir $1 cardinal successful gross operating disbursal savings by 2025. 

About $300 cardinal of those savings volition beryllium reinvested into merchandise launches and R&D programs. 

The institution besides said the program volition effect successful $700 cardinal successful nett operating disbursal savings by 2025. 

Biogen's banal terms roseate much than 1% successful premarket trading Tuesday. 

The caller layoffs travel landmark approvals of Leqembi and the company's ALS cause Tofersen this year.

Investors are pinning their hopes connected the caller medicines arsenic Biogen's blockbuster aggregate sclerosis and spinal muscular atrophy treatments look fierce contention from cheaper versions and akin drugs. 

Biogen CEO Chris Viehbacher said during an net telephone that the cost-cutting program is "an accidental truly to marque definite that this year, earlier we get into the merchandise launches, that we are genuinely acceptable for growth." 

"There are an atrocious batch of patients who beryllium connected Biogen products," helium said during the call. "There's a need, obviously, to person a beardown concern successful our caller merchandise launches." 

Wall Street analysts were pleased with the layoff announcement.

Wells Fargo expert Mohit Bansal said successful a Tuesday probe enactment that the broader cost-cutting program is "in enactment with our expectations and was the crushed for our bullish stance connected the name."

"We expect the banal to beryllium up connected this quality arsenic investors were waiting for this move," helium said.