Ionis Axes Akcea's 70% Workforce Under Restructuring Plan

Ionis Pharmaceuticals Inc IONS said it expanded its distribution agreement with Swedish Orphan Biovitrum AB (“Sobi”) for Tegsedi in North America.
Tegsedi is indicated for polyneuropathy (a condition where multiple peripheral nerves become damaged) in adults with hereditary transthyretin amyloidosis.
Under the terms of the expanded agreement, Akcea retains the marketing authorizations for Tegsedi in the U.S. and Canada.
The company will continue to supply the commercial product to Sobi and manage regulatory and manufacturing processes.
After Sobi’s inclusion in Tegsedi distribution in North America, Ionis is cutting 70% of Akcea’s staffers in the U.S. and Canada, primarily those working on Tegsedi, to “better align with the immediate needs of its business and to focus on high priority programs.” It includes IONIS-TTR-LRx, which inhibits the production of transthyretin, the same protein targeted by Tegsedi.
The restructuring will cost Ionis between $11 to $14 million, according to an SEC filing.
The company expects to save up to $50 million a year beginning in 2022 due to the expanded Sobi agreement.
Separately, Ionis announced that it intends to raise $500 million via Convertible Senior Notes due 2026.
Price Action: IONS shares are down 5.2% at $44.8 in the premarket session on the last check Wednesday.