Amid Shaky Launch Of Aduhelm, Biogen Mulls Substantial Layoffs: STAT News Report

Between slow sales, safety concerns, and possible European rejection for Alzheimer's disease drug Aduhelm, Biogen Inc BIIB is planning large-scale layoffs, STAT News reports, citing a Biogen employee close to the matter. 

• The publication writes that the plan has yet to be finalized and still needs approval from the company's board of directors. Overall, the headcount reduction could cut expenses by $500 million to $750 million, STAT said.
• In 2015, citing dwindling sales of its multiple sclerosis med Tecfidera, Biogen fired 11% of its workforce.
• While additional info on Biogen's plans isn't yet known, the layoffs are expected to "exceed" the 2015 round of job cuts in terms of the number of employees and cost savings, STAT reports.
• The news comes just a few weeks after Biogen's longtime head of R&D, Al Sandrock, announced to leave the company by the end of the year.
• Aduhelm's approval has faced sharp criticism. Meanwhile, Biogen posted Aduhelm sales of just $300k in Q3.
• In addition, Biogen last month received a "negative trend vote" on Aduhelm's application from the European Medicines Agency's Committee for Medicinal Products for Human Use.
• Price Action: BIIB shares are up 0.23% at $232.97 during the market session on the last check Friday.