Biotechnology giant Biogen said Wednesday it will cut about 11 percent of its workforce and end some development programs in a restructuring aimed to save $250 million a year.
Biogen's stock zoomed up more than 7 percent after the announcement of the cuts and release of the company's better-than-expected earnings report.
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The job cuts come after a slowdown in growth of Biogen's multiple sclerosis drug, Tecfidera. The company also reported better-than-expected third-quarter adjusted earnings of $4.48 a share on sales of $2.8 billion. Analysts had estimated earnings of $3.80 a share on $2.65 billion in revenue. Tecfidera sales also topped estimates, at $937 million for the quarter, versus expectations of $892 million.
Separately, Biogen reported that another of its multiple sclerosis drugs, Tysabri, failed in a late-stage clinical trial in a form of the disease known as secondary progressive MS.