Buzz: New Biogen Idec CEO plotting consolidation, layoffs

Biogen Idec's new CEO George Scangos (photo) appears to be moving ever closer to a significant reorganization of the corporate and R&D structure he inherited a few months ago. Quoting sources, Reuters reports the big biotech is planning to consolidate facilities and kill some of its R&D projects as it moves to define its core activities and jettison anything that doesn't fit the new reality.

The source also whispers that there will be job losses, but there are no details in the latest hint that big changes are afoot. There was a considerable level of skepticism voiced among biotech writers when Scangos, a scientist who had headed Exelixis, was named to the helm of Biogen. But he appears to be preparing to chasten anyone who doubted his appetite for bold decision making.

Earlier, Biogen and Genentech amended their deal on the experimental MS drug ocrelizumab, with Genentech taking over the cost and responsibility for clinical trials. In return Biogen is getting a share of any revenue that is intended to approximate a 30 percent interest.

- here's the story from Reuters