Biogen, Daiichi To Cut Jobs

Despite reporting double-digit gains in nine-month sales and earnings, Biogen has decided to shutter some drug development programs and cut 11% of its workforce, or nearly 900 employees. The Boston-area firm is discontinuing its Phase III program for Tysabri in treating secondary progressive multiple sclerosis (MS), as well as research in lupus nephritis, immunology, and fibrosis. The MS drugs Tysabri, Tecfidera, and Avonex accounted for 89% of the firm’s $6.8 billion in product sales this year. Biogen expects the restructuring to reduce annual expenses by about $250 million. Meanwhile, Japan’s Daiichi Sankyo is reorganizing in the U.S. as it shifts its focus to specialty cardiovascular, pain management, and oncology drugs. The company expects to eliminate 1,000 to 1,200 positions at its Parsippany, N.J., office and in sales, but it will leave R&D untouched.