Biogen Layoffs Begin As Reata Acquisition Forges Ahead

3 min readAug 21, 2023

Key takeaways

Biogen is firing its workers in the second round of layoffs in two years
The company hopes to acquire Reata, which has FDA approval for a rare neuromuscular disorder treatment
Biogen shares were down 2% on Thursday at the news

Biogen has kicked off the first of its layoffs, having confirmed last month it was slashing its global workforce for the second time in two years. The move marks a significant shift for its new-ish CEO as the business gets lean and diversifies, including a hefty $7.3 billion purchase of Reata. Here’s what you can expect.

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What’s the latest with Biogen layoffs?

The Boston Business Journal was the first to report last week that Biogen has kicked off its latest layoffs round, having slashed over 900 job roles the previous year. In July, Biogen announced that it intends to lay off 1,000 employees globally.

The biotech company declined to confirm the exact number of employees or functions affected but said the cuts were “global and taking place across the organization”. The majority of notices will be served by the end of September.

It’s part of CEO Chris Viehbacher’s “complete redesign of Biogen”, which includes cost-saving measures like layoffs and expansion into other fields like psychiatry and immunology. Biogen shares were down 2% on Thursday.

Biogen’s Reata acquisition

One of Biogen’s big bets in shifting the company into a new era is its $7.3 billion acquisition of Reata Pharmaceuticals.

Reata has the FDA-approved Skyclarys, a first-of-its-kind treatment for a rare neuromuscular disease. The sales potential for the new treatment is predicted to be $1.5 billion by 2030, which explains why Biogen is buying Reata for a 59% markup on its share price.

Last week the FDA rejected its flagship major depressive disorder drug Zurzuvae, created in partnership with Sage Therapeutics. Until changes can be made to gain FDA approval, Biogen’s hopes are pinned on the Alzheimer’s drug Leqembi and the Reata purchase going through regulatory approval swiftly.

In other news, Samsung Bioepis is apparently in talks to buy Biogen’s remaining biosimilar portfolio as Viehbacher has previously stated he’s pursuing strategic options for Biogen.

The bottom line

Biogen’s layoffs aren’t unexpected, having already been confirmed last month, but the timing with the FDA’s rejection of the company’s depression treatment leaves Biogen looking for a silver lining. With the stock down for the year, investors will be hoping the Reata acquisition is the golden goose Biogen is hoping for.

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