Biogen has announced layoffs at Reata Pharmaceuticals’ Plano, Texas site, affecting 113 employees, just weeks after completing its $7.3 billion acquisition of the company in July 2023.
The layoffs are set to take effect in late November and come as part of Biogen’s broader cost-reduction program, which aims to save $1 billion in operating expenses by 2025.
The positions affected include general and administrative services, as well as some development-focused roles, with a focus on roles where there are existing synergies at Biogen.
Biogen confirmed that essential staff involved in the launch of Skyclarys, the FDA-approved treatment for Friedrich’s Ataxia, will be retained to ensure no disruptions for patients. Reata had 321 employees at the end of 2022, and the impending layoffs will impact about a third of the company’s headcount.
This move reflects a broader trend in the biopharma industry, with several companies, including Sana Biotech and uniQure, recently announcing layoffs and pipeline refocusing initiatives to streamline their operations and improve business efficiencies.
Large pharmaceutical companies like Novartis, Pfizer, and Bristol Myers Squibb have also reduced their workforces and pipelines in recent months to achieve similar goals.
These strategic shifts indicate the industry’s continuous efforts to adapt to evolving market demands, regulatory changes, and economic factors while ensuring sustainable growth and innovation in the face of challenges.