Pharmaceutical firm Elan says it is cutting 115 jobs at its Irish operations as part of an ongoing strategic review process. It is understood that most of the job cuts will be made in Athlone.
The job cuts are being made the company's biopharmaceuticals business as Elan waits the outcome of its phase three trials on its new Alzheimer's drug, bapineuzumab. The job cuts will occur at its 'fill-finished' facility in Athlone and at its 'strategic approach to biological planning operations' across both Dublin and Athlone.
Another 115 jobs will go in San Francisco in the US. Staff are beginning a consultation period with the company over the cuts today.
The company last year closed its offices in New York and Tokyo and had indicated more job cuts in its last results announcement.
Elan said the job cuts are part of its ongoing efforts to 'rigorously' manage its overall cost base and direct more investment towards its 'promising and late stage' pipeline of drugs.
Other moves include a postponement of Elan's biologics manufacturing activities and a strategic redesign and realignment of its reseach and development organisation within its biopharmaceutical business.
Elan says it expects to reassess the cuts after it has had the opportunity to evaluate the data from the Phase 3 trials of bapineuzumab.
Elan says today's measures will reduce operating expenses this year by $30-35m. The firm repeated its financial guidance for 2009 and said it expects revenue to grow by a double digit percentage.
The company said this internal review was conducted separately from the previously announced and continuing strategic review process being undertaken by Citigroup Global Markets.
Elan has a global workforce of 1,700. It employs about one third of these in Ireland, or 580 people.
The company's shares closed down 13 cent at €4.85 in Dublin.
