Another pharmaceutical company revealed it would initiate a restructuring strategy designed to cut costs and streamline operations.
New Haven, Connecticut-based Alexion Pharmaceuticals announced it would cut its global workforce by approximately 20 percent with research and development operations taking the brunt of these reductions.
Multiple manufacturing facilities including a plant in Rhode Island as well as other specified regional and country-based offices will be closed as well.
Also, the company plans on moving its headquarters from Connecticut to Boston by mid-2018 where it plans to have about 400 positions available in the city.
“By streamlining our operations we will create a leaner organization with greater financial flexibility that is highly focused on delivering for patients, growing our rare disease business, and both leveraging our leadership in complement and pursuing disciplined business development to expand the pipeline,” said Alexion CEO Ludwig Hantson, in a statement.
This continues the cost-cutting strategy announced earlier this year where it cut about 7 percent of its workforce, according to Reuters.
Executives initiated this reduction after an exodus of top management and the fallout of a sales practice scandal related to Soliris, an immunosuppressive drug that provides the bulk of the company’s revenue and is considered to be one of the most expensive therapies in the world clocking in at $480,000 per year.
Overall, Alexion expects this strategy to free up $250 million in annual spending by 2019 where it plans on using $100 million that will be reinvested into the development pipeline.
Other drugs in the firm’s portfolio includes Strensiq, which treats patients with perinatal/infantile- and juvenile-onset hypophosphatasia, and lysosomal acid lipase deficiency treatment Kanuma.
Filed Under: Drug Discovery