Biogen Idec Reveals Restructuring Details

Biogen Idec has revealed the strategic, operational and organizational changes related to its previously announced restructuring aimed at increasing focus and efficiency for future growth. The company will focus on neurology, cease development efforts in cardiovascular medicine, and outlicense its oncology assets. The company will also seek to leverage its commercial strengths and expertise in developing and manufacturing biologics through strategic partnerships.

Operational changes include relocating its U.S. workforce from six current locations into three existing facilities in Weston and Cambridge, MA, and Research Triangle Park, NC. The company will close its site in San Diego, CA and consolidate its facilities in Cambridge and Weston, MA. As a result, approximately 13%, or 650 full-time positions, will be cut. Biogen expects to save $300 million annually with these initiatives, which will incur $115 million of restructuring costs.

Biogen plans to expand its efforts in Multiple Sclerosis (MS) by maximizing the potential of Avonex and Tysabri, and aggressively developing its MS pipeline, including fampridine, BG-12, PEGylated interferon, daclizumab and anti-LINGO. Biogen will also focus on developing therapies for other neurological diseases, such as amyotrophic lateral sclerosis (ALS) and Parkinson’s disease. The company will also pursue treatments for other serious diseases in the area of immunobiology for select disorders where there is a significant unmet need. Biogen will also continue to pursue its long-acting rFactor VIII and rFactor IX programs in hemophilia.

George Scangos, Ph.D., Biogen Idec’s chief executive officer, said, “Biogen Idec will be better off as a result of these actions. First, we will have increased focus. We have been operating in too many therapeutic areas and haven’t maximized our opportunities. We will leverage our strengths in biologics manufacturing to bring forward our own projects as well as aggressively in-license projects in our target areas. Second, as a result of these actions, Biogen Idec will be leaner, more nimble and more decisive. Importantly, these initiatives will save more than $300 million annually and will position Biogen Idec to accomplish great things in the future.”