Biogen to cut 11 pct of workforce

[October 21, 2015]  (Reuters) - Biogen Inc said it would cut 11 pct of its global workforce by the end of this year and stop a late-stage study on its blockbuster drug Tecfidera for secondary progressive MS, sending its shares up 7 percent in premarket trading.

Biogen, which had about 7,550 employees as of Dec. 31, said it expects to incur charges of $85 million-$95 million, primarily in the fourth quarter.

Tecfidera is already approved for the treatment of multiple sclerosis.

Biogen has also discontinued several other development programs, including a drug for lupus nephritis.

The company, which has five FDA-approved MS drugs, said net profit attributable to Biogen rose to $965.6 million, or $4.15 per share, in the third quarter ended Sept. 30, from $856.8 million, or $3.62 per share, a year earlier.

Revenue rose 11 percent to $2.8 billion, driven by higher demand for Tecfidera.

(Reporting by Rosmi Shaji in Bengaluru; Editing by Don Sebastian)
 

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