BioMarin Reduces About 4% Of Global Workforce

(RTTNews) - BioMarin Pharmaceutical Inc. (BMRN) announced a reduction of about 120 employees, or roughly four percent of the global workforce.

The Job cuts come after the company decided to redesign the organization to better focus investments that advance its R&D pipeline, maximize recent commercial launch success, prepare for a potential launch of Roctavian in the U.S., and drive core infrastructure optimization.

According to the company, the Job cuts will result in financial savings of about $50 million annually beginning in 2023. The company expects to reinvest a significant portion of the savings in its clinical development portfolio, early-stage pipeline, and Roctavian and Voxzogo launches, while the remainder will contribute to the company's goal of increasing profitability and expanding operating margins.

The company noted that most of the job cuts will come from its U.S. operations and expects to complete reductions by December 31, 2022. As a result of the reduction in force, the company will incur total estimated pre-tax charges of approximately $20 million - $25 million spread across the third and fourth quarters of 2022, representing one-time cash expenditures for severance and employee termination benefits.