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.
The Disconnect Continues: Amgen Rethinks R&D // Pharmalot.
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.
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