Biogen Idec is to cut 650 jobs as it refocuses on research and development.
The company said it was aiming to reduce annual operating expenses by $200 million to $300 million. The job cuts will take place throughout the company and will result in a pretax charge of $30 million to $40 million, Biogen said.
The Massachusetts-based company said it also plans to divest certain assets, including a manufacturing facility in San Diego and its psoriasis drug, Amevive, which had sales of $43 million in 2004.
Biogen said the actions will enable it to spend around $200 million a year for business development and external research starting in 2006, up from the $50 million earmarked for business development this year.
Along with Elan, Biogen this year pulled its multiple sclerosis drug, Tysabri, off the market over safety concerns.
The company said it is continuing discussions with regulatory authorities regarding the return of Tysabri to the US market and its potential launch in Europe.
Biogen and Elan withdrew the drug in February after it was linked to a rare and potentially fatal brain disease.