The 880 job losses constitutes 11 percent of Biogen’s workforce. The move is intended to save $250 million per year. Biogen has said the core reason for the layoffs is due to a slowdown in growth of its multiple sclerosis drug called Tecfidera.
Tecfidera (generic name dimethyl fumarate) is given in two different strengths, one for a starter dose and the other for a maintenance dose. In 2014, the U.S. Food and Drug Administration (FDA) issued a warning about patient with multiple sclerosis who was being treated with Tecfidera. The patient developed a rare and serious brain infection called progressive multifocal leukoencephalopathy (PML). The patient later died.
According to Catherine Falcetti, associate director of public affairs for Biogen “They [the patient] developed PML and recently died due to complications associated with aspiration pneumonia.”
As part of the restructuring, Biogen aims to end its Phase 3 program for Tecfidera), which was in relation to secondary progressive multiple sclerosis. Research into immunology and fibrosis will also be halted.
Bioghen plans to put the money saved into developing medications that have a “high potential.” This includes potential treatments for Alzheimer’s disease, multiple sclerosis, and spinal muscular atrophy.
With the job losses, George Scangos, who is Biogen’s CEO, said: “The decision to reduce the company’s workforce was extremely difficult, but we believe these actions are necessary to fulfill our mission of bringing important new medicines to patients. We have several high-quality programs that are now or soon will be in Phase 3, and the cost savings from the restructuring will be reinvested to carry out those programs aggressively and hopefully to bring them to patients as quickly as possible.”
In related pharmaceutical sector news, Teva Pharmaceutical Industries is aiming to spend $7 billion, generated by selling new stock, to purchase Allergan Plc’s generic drug business.
