Amgen downsizes by 300 amid industry constriction

Published: Jan 30, 2023

By Tristan Manalac

BioSpace

Amgen is implementing organizational changes that include laying off approximately 300 team members to “better manage against industry headwinds,” a company spokesperson confirmed to BioSpace via email Monday.

The job cuts will mainly affect Amgen’s commercial team and will involve employees based in the U.S., the spokesperson said. The company will offer those affected transitional support.

Current employees also took to LinkedIn to support their colleagues and help them find new opportunities, a trend seen frequently in 2023.

Amgen is one of many biopharma companies turning to layoffs amid economic difficulties.

Last week, Celularity initiated its strategic review and warned employees of potential job cuts. Robert J. Hariri, CEO, Celularity, said the business realignment was to support the company’s most promising candidates and programs.

Also last week, Massachusetts’ Finch Therapeutics slashed 95% of its headcount after a lack of funding and partnerships forced the company to discontinue the Phase III PRISM4 trial of its investigational Clostridioides difficile therapeutic CP101.

Even industry heavy hitters are feeling the squeeze.

Merck KGaA’s EMD Serono is letting go of 133 staff members at its Massachusetts research facility.

Last November 2022, the company revealed that it would rely heavily on external co-development, with more than 50% of future launches resulting from partnerships and in-licensing.

Amgen Gears Up for a Busy Year

In recent months, Amgen has made several standout plays that set it up for a productive year ahead.

In December, the California-based company dropped $26.4 billion to acquire rare disease leader Horizon Therapeutics in biotech’s biggest deal of 2022.

This move positioned Amgen as a vital industry frontrunner, so much so that not even Sen. Elizabeth Warren’s (D-MA) letter to FTC commissioners could shake the stock market’s confidence in the company.

Amgen opened 2023 with another high-value collaboration with Netherlands-based Synaffix, putting $2 billion on the line to discover and develop next-generation antibody-drug conjugates. The deal also provides Amgen access to Synaffix’s entire ADC development platform, which it can tap for up to four additional programs.

Acquisitions and agreements have always formed the cornerstone of Amgen’s growth strategy, Robert J. Bradway, chairman and CEO, Amgen, said during the 41st J.P. Morgan Healthcare Conference. These deals deepen the company’s portfolio and help it establish more vital industry leadership in different therapeutic spaces.

Through 2030, Bradway expects Amgen to remain financially comfortable through “disciplined capital allocation” and strategic investments in external innovation and internal research and development.

Source: BioSpace