Biogen (NASDAQ:BIIB) layoffs are on the way as the company seeks further profits with its new Alzheimer’s disease drug launch.
This has the pharmaceutical company planning to lay off 1,000 employees, which represents about 11% of its total workforce. These are part of its “Fit for Growth” program announced in it latest earnings report.
The Biogen Fit For Growth program has it aiming for $1 billion in gross operating expense savings. The company expects to put $300 million of these savings into product launches and R&D programs. That has it expecting $700 million in net operating expense savings by 2025.
Christopher Viehbacher, president and CEO of Biogen, said this about the layoffs.
“We have taken a bottom-up view to shift our resources to the areas of greatest value creation. While we will be making significant investments in our newly prioritized pipeline and new product launches, we will also need to invest less in other areas which are no longer growing. With these changes, I believe that Biogen will be better positioned to maximize its growth opportunities going forward.”
Biogen Q2 Earnings
Helping out BIIB stock today is the company’s latest earnings. That includes adjusted EPS of $4.02 per share alongside revenue of $2.46 billion. For comparison, Wall Street was expecting adjusted EPS of $3.76 and revenue of $2.36 billion.
BBIB stock is up 1.1% as of Tuesday morning.
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We have all of the latest stock market coverage that traders need to know about on Tuesday! Among that is what has shares of Bellerophon Therapeutics (NASDAQ:BLPH), Humanigen (NASDAQ:HGEN), and Electra Battery Materials (NASDAQ:ELBM) stock in the news today. All of that info is ready at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
