Finance Watch: Biopharma Firms Get Ahead Of Q3 Updates With Restructuring Reveals

Cost-cutting has become the norm for biopharmaceutical companies in 2023 as drug developers struggle to raise capital for ongoing research and development programs, never mind bringing in new funding for growth opportunities. But traditional reasons for restructuring are still around, as Biogen, Inc.’s round of layoffs after its acquisition of Reata Pharmaceuticals, Inc. shows.

Biogen announced its intention to buy out Reata in July, and the deal closed at the end of September, bringing its Friedrich’s ataxia drug Skyclarys (omaveloxolone). (Also see "Biogen Buys Time For Leqembi Ramp-Up With Reata Acquisition" - Scrip, 28 July, 2023.) Just two weeks later, Reata revealed 113 jobs will be cut in November – accounting for approximately a third of its staff. According to statements by Biogen, it will retain employees related to Skyclarys commercialization to maintain patient access and has trimmed positions with overlap in the parent company