Biogen Inc (NASDAQ:BIIB) announced on Tuesday that it expects to cut about 1,000 jobs, or 11% of its workforce, as the company gears up for the launch of a new Alzheimer's disease drug, Leqembi.
Biogen has seen sales of its multiple sclerosis drug Tecfidera impacted by cheaper generic rivals, while the company’s spinal muscular atrophy drug Spinraza faces competition from treatments by Novartis and Roche, Reuters reported.
"Biogen's business is in transition, and while we will be making significant investments in our newly prioritized pipeline and new product launches, we will also need to invest less in other areas," CEO Christopher Viehbacher said in a statement.
The biotechnology company said it expects to re-invest about $300 million from its cost-cutting program into launches and research and development.
It added that the program aims to reduce about $700 million in net operating expenses by 2025.
Biogen also reported second-quarter 2023 earnings of $4.02 per share, surpassing the analyst consensus estimate of $3.77.
Shares of Biogen rose about 1.5% in pre-market trading on Tuesday and have gained 34% over the past 52 weeks.
Contact Sean at sean@proactiveinvestors.com