Biotech firm Amgen plans to cut 450 employees in its second wave of job cuts this year.

The California-based business is grappling with intensifying pressure on drug prices and high inflation and will cut around two percent of its workforce.

A company spokeswoman said: “We made these changes to realign our expense base in the face of intensifying pressure on drug prices and high levels of inflation.”

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Amgen employed almost 25,200 employees in more than 50 countries as of December 31, 2022.

The number of layoffs by US companies in January and February of this year reached a new record since 2009.

Amgen’s move to reduce its workforce highlights the impact of rapidly rising interest rates on the healthcare sector.

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As part of organizational changes, the biopharmaceutical firm eliminated around 300 workers in January.

Its revenue dipped slightly in the fourth quarter as a 4 percent gain in sales of its own drugs was offset by lower revenue from its deal to produce COVID-19 antibody treatments for Eli Lilly.

The biotech company forecasted revenue of $26 billion to $27.2 billion in 2023, while analysts expected $27.17 billion.

Source: Reuters

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