Global biotechnology company, Biogen has announced layoffs as part of a $500 million reorganization plan.
The company has begun mailing layoff notices to employees across the United States, although the exact number of affected employees has not been disclosed.
It is reported that some employees have already quit, while others are entitled to seek new roles.
The job cuts have been triggered by a poor response to the Alzheimer’s drug Aduhelm, due to concerns over its efficacy and safety profile.
Aduhelm’s fourth-quarter sales came in at just $1 million, up from $300,000 in the third quarter of 2021.
The company said: “These changes will help the company remain flexible, so additional investments can be made in our pipeline and other strategic initiatives.
“We appreciate the contributions of our departing colleagues, who will be eligible for severance and support services as they transition out of the company.”
The layoffs are part of a restructuring announced by Biogen in December that aims to save $500 million in yearly expenditures.
A few days earlier the firm was looking to save $750 million and with a potential lay off up to 1,000 employees.
The restructure was prompted by the poor response of Aduhelm, an Alzheimer’s disease treatment, due to concerns surrounding the first-in-class antibody’s effectiveness and safety profile.
Source: Fierce Pharma