Biogen boosts R&D budget after research cutbacks

Biogen Idec ($BIIB) plans to spend about a quarter of its revenue this year on its research and development budget, after CEO George Scangos (photo) and his team cut multiple programs during 2010 and 2011 to keep R&D spending in check and narrow the focus of its research to areas such as neurology, immunology and hemophilia. "Recall, the company began a major restructuring in late 2010, of which the main goal was to reduce R&D spending as a % of revenue," ISI Group analyst Mark Schoenebaum wrote, as cited by Investors Business Daily. "This may not be happening quite as fast as some had expected. However, we think in light of the success of [multiple sclerosis drug] BG-12 (unanticipated at the time of the restructuring), investors will readily tolerate this in 2012." Article

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