Baxalta in hand, Shire dumps drug programs in hunt for $210M in R&D cuts
Now that Shire has closed on its buyout deal for Baxalta, the company has already trimmed a slate of drug development programs as it seeks to chop out a total of $210 million in R&D costs from the combined operation over three years. And among the first to go was a mid-stage hepatitis B gene therapy that didn’t make the cut in an increasingly competitive field.
The executive team — led by CEO Flemming Ornskov — laid out a new, bigger target for cutting costs, upping the ante from the $500 million in “synergies” pegged at the time the deal was announced to $700 million now that they’ve had a chance to consider all the prospects. And 30% of that — roughly $210 million – is coming straight out of research.
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