On Tuesday, Biogen Inc announced its plans to cut around 1,000 jobs, which amounts to roughly 11% of its workforce. This move comes as the company aims to reduce expenses and simultaneously accelerate the launch of a new drug for Alzheimer's disease in its endeavour to regain growth.

Leqembi, a joint product of Biogen and Eisai, has become the focal point of investors' optimism as they seek to drive growth. This comes at a time when Biogen's lucrative treatments for multiple sclerosis and spinal muscular atrophy (SMA) are encountering intense competition from more affordable alternatives and rival medications.

"Biogen's business is in transition. While we will be making significant investments in our newly prioritised pipeline and new product launches, we will also need to invest less in other areas,” CEO Christopher Viehbacher said in a statement, reported Reuters. 

In April, the company had announced its decision to halt or terminate at least four ongoing studies of experimental drugs. The purpose behind this move was to redirect their focus towards more profitable opportunities, particularly the launch of Leqembi, while also implementing cost-cutting measures.

Biogen foresees that its newly implemented cost-cutting program will result in a reduction of approximately $700 million in net operating expenses by the year 2025. As of the end of the previous year, the company had a total of 8,725 employees worldwide. In the second quarter, Biogen achieved an adjusted earnings per share of $4.02, surpassing analysts' estimates of $3.77. 

During the three months ending in June, drugs such as Spinraza, used for treating SMA, and Avonex, a therapy for multiple sclerosis, outperformed analysts' expectations. Spinraza sales slightly increased to $437 million, exceeding estimates of $434.79 million, while Avonex sales of $220.3 million surpassed the expected $214.96 million, according to Refinitiv data.