Biogen to Fire Workers, Restructure R&D After Difficult Year
- Company raises forecast as adjusted earnings beat estimates
- Late-stage trial of drug natalizumab fails, company says
Biogen to Cut 11% of Workforce in R&D Restructuring
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Biogen Inc. will fire 11 percent of its workforce and shut down some research programs in order to put money behind existing drugs and what it sees as its best future bets.
The company said the cuts to its workforce of about 8,000 people will save about $250 million a year. It comes after several periods of disappointing results and a stock price that is down 22 percent this year. Most of the restructuring will be completed by the end of 2015, and the drugmaker said it will take an $85 million to $95 million charge, mostly in the fourth quarter.