Millennium plans to fire 600
by Jennifer Heldt Powell
Friday, June 6, 2003
[Some (but not much) background info from Boston]
Millennium Pharmaceuticals Inc., still riding high following U.S. regulatory approval for one of its anti-cancer treatments, said yesterday that it is cutting 600 jobs to narrow its focus to developing fewer products and to turning a profit.
Research will concentrate on products in the later stages of development, the Cambridge biotech company said. And it said it would close offices in California and England.
Officials of the 10-year-old company said they are scaling back to try to reach profitability by 2006.
The company remains committed to bringing breakthrough drugs to the market, officials said.
``In the current environment, however, we realize that to keep delivering on this commitment we need to focus more sharply on the most attractive opportunities in our pipeline,'' said Mark Levin, chief executive. ``Unfortunately, this means we no longer have roles for many outstanding individuals.''
The restructuring is part of an ongoing effort that began earlier this year, officials said.
``We've been doing some shaping around the organization for the past couple of months, and this is part of that effort,'' said Adriana Jenkins, Millennium spokeswoman.
The job cuts will take place over the next 18 months, she said. It's not certain yet how many will fall on Bay State workers. The offices slated for closure employ a combined 360 people, but some will move to the Cambridge headquarters.
Millennium shares gained 93 cents to close at $17.08, up about 6 percent yesterday.
Millennium shares have doubled this year, boosted in part by the federal Food and Drug Administration approval of Velcade, a treatment for the blood cancer multiple myeloma. Reviewed and approved in less than four months, it's the first in a new class of drugs called proteasome inhibitors.
But despite the recent good news, Millennium posted an operational loss of $590 million last year.
``Investors have been hoping for these cuts for some time now,'' said Yaron Weber, an SG Cowen Securities analyst. ``One never wants to see job loss, but their burn rate was too high and they had to pare back on some of their expenditures.''
The restructuring will leave Millennium with 1,700 employees.
Officials are also considering selling some assets, but yesterday declined to be more specific.
bostonherald.com |
