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Boston biotech giant Biogen announced Wednesday that they're cutting 11 percent of their workforce worldwide or 880 jobs, 400 of which reside in Massachusetts. The biotech giant will also be shuttering a number of its drug research programs.
Biogen says the savings will be invested in other multiple sclerosis programs and treatments for Alzheimer's and muscular atrophy.
- "In an earlier statement, Scangos had said 'we believe these actions are necessary to fulfill our mission of bringing important new medicines to patients.' Biogen says the restructuring will save $250 million a year, and is expected to be completed by January."
- "Biogen said the cutback will lower its annual operating costs by about $250 million. The savings would be used to invest in other MS programs as well as treatments for Alzheimer’s disease and spinal muscular atrophy, the company said. But the drug maker will discontinue a late-stage clinical study to test its MS pill Tecfidera in a new patient population along with the development of drugs to treat lupus nephritis and immunology and fibrosis research."
- "Cambridge-based Biogen (Nasdaq: BIIB), which has about half of its 8,000 global employees in Massachusetts, said the move will save about $250 million a year which it will invest back into drug research."
- "'You’re going to see more of these setbacks,' said former venture capitalist Jonathan J. Fleming, president of the Network for Excellence in Health Innovation, a Cambridge health policy institute. 'We’ve had an investment boom since 2013 that has seen 138 new biotech companies going public. Just the law of averages tells you that all their drugs can’t work.' "
This segment aired on October 21, 2015.
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