Amgen cuts 380 R&D jobs

 

Amgen is cutting 380 jobs in its research and development division due to rising costs of drug trials.

The California-based company increased its spending on research and development by 26% during the second quarter to $808 million, mainly due to the development of more expensive trials involving experimental drugs trebananib, ganitumab and OncoVEX.

Spokeswoman for Amgen, Mary Klem, said: “We will continue to invest in our R&D. This doesn’t represent an across-the-board cut.”

Amgen reportedly spent $2.84 billion in research and development last year. The company said in July that the increase in costs will be around 19% of product sales.

The company said that remaining funds will go towards marketing licensed medicines such as bone-strengthening Prolia and Xgeva, which reduces fractures in cancer patients.

Locations thought to be affected include Seattle, Boston, San Francisco and Thousand Oaks, California.

The lay offs come the same day the appointment of Anthony Hooper as Amgen’s Executive VP of Global Commercial Operations.