The news is out that Amgen is rethinking its R&D structure. A statement by the company says it is evaluating ways to "improve focus and re-allocate resources to key pipeline assets and activities." Meaning? It is likely going to cut R&D jobs at its Seattle, South San Francisco and Cambridge, MA sites. The formal plan will likely be unveiled at its Q3 earnings call on October 24th.
This appears to be just th elatest evolution of the company from its biotech roots to becoming more and more like a Big Pharma player. Analysts note that Amgen spent nearly 19% ($2.9 B) of its $15.1 B in revenues last year on R&D. They and investors feel their is room for Amgen to spend less and pass some of the cash down to investors. We'll see how that plays. About 4 years ago the company eliminated more than 2000 jobs but here we are again in 2011. See Xconomy and Fierce Biotech.
Posted by Bruce Lehr Oct 13th 2011.