Alexion Pharmaceuticals (NASDAQ:ALXN) a rare disease drug developer will cut down on its research and development (R&D) programs and lay off 200 people. The company had recently reported a positive 2016, stating a $3.084 billion in total revenue.
Interim CEO David Brennan said in their financial report for last year to “prepare for the potential launches of Soliris in refractory gMG, and focus on our highest priority R&D programs.”
Brennan will also assume the role of chairman of the board after it was announced Dr. Leonard Bell, who founded Alexion Pharmaceuticals will retire in May of this year.
Recent Changes in the Company
Alexion told Reuters in a statement they were investing in key growth drivers, including their portfolio of marketed products.
Last year CEO David Hallal and CFO Vikas Sinha stepped down from their positions amid allegations of improper sales practices.
The company’s lead product Soliris was the source of most growth in the company, however, its sales have recently slowed down.
The company has yet to announce where exactly the cuts will be made and what programs will suffer the most based on this development. Alexion is expected to provide a company update on their upcoming Q1 financial results. In a year Alexion’s share price has gone down 8.87 percent.
FierceBiotech reported on Barclays analyst Dr. Geoff Meacham saying the changes were “planned and incorporated” based on their fourth quarter earnings call last year.
The FDA will review the potential for Soliris to treat patients with refractory generalized myasthenia gravis, a rare chronic disease.
Alexion’s Stock Performance
Alexion hopes to find a new market for Soliris to gain the revenue it had recently lost. However, Alexion has now failed a couple of tests for Soliris. Alexion’s stock price as of 12:00 PST is 122.44.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.