Amgen To Cut Still More Jobs?
Make a commentBy Ed Silverman // March 28th, 2008 // 1:02 pm
Maybe. That’s what we hear from sources familiar with the biotech, which is enduring all manner of difficulties for more than a year. An FDA panel urged tighter restrictions for its Aranesp flagship med after studies found increased risks of cardiovascular disease, tumor growth and death. Congress is investigating the marketing and safety of Aranesp and another anemia drug. The SEC is probing its failure to tell Wall Street that a key clinical trial ended over safety concerns. Medicare reduced reimbursement. And the stock isn’t far from its 52-week low.
To cope, Amgen last August announced staff cuts of 12 percent to 14 percent, which represents 2,200 to 2,600 jobs. The hope is to save between $1 billion and $1.3 billion this year. But this may not be enough, especially since a federal judge in Boston may allow Roche to sell its own anemia med, even after losing a patent trial to Amgen. And so additional cuts have been discussed that could bring the total closer to 20 percent of Amgen’s workforce. No decision, however, has been made and it remains possible Amgen will not shed further jobs, our sources add.
An Amgen spokesman wrote us to say that “we do not comment on speculation and rumors and have made no any recent announcements regarding staff levels.”