According to Reuters, new Biogen Idec CEO George Scangos is drafting plans to restructure the company to enable it to be more competitive in the future. The paln is said to include staff reductions, facility consolidations and the termination of non-core R&D programs. In other words, they will implement the "Big Pharma cost savings strategy" .
Last week, Biogen announced a restructuring of its deal with Genentech on its MS drug ocrelizumab whereby Genetech will take over costs and responsibilities for clinical trials. Biogen will retain about a 30% interest in future revenues. Biogen can expect more competition in the MS arena as both Genzyme and Sanofi reported positive results from the clinics last week. Biogen's Tysabri also has had some well chronicled problems with safety that have hampered its MS revenues.
Posted by Bruce Lehr October 25th 2010.