BioMarin Simplifies Organizational Structure to Increase Efficiency
BioMarin Pharmaceutical (Nasdaq:BMRN) announced an organizational redesign aimed at enhancing operational efficiency and focusing on R&D investments. This restructuring will lead to a reduction of approximately 120 employees, about 4% of its workforce, resulting in annual cost savings of $50 million from 2023. A one-time cost of $20-$25 million will be incurred due to severance. The company plans to reinvest savings into its product pipeline, including the potential U.S. launch of ROCTAVIAN™ and the continued success of VOXZOGO®.
- Projected annual savings of $50 million starting in 2023.
- Reinvestment of savings into the clinical development portfolio and product launches.
- Reduction of approximately 120 employees, representing 4% of the workforce.
- One-time costs of $20-$25 million due to the reduction in force.
SAN RAFAEL, Calif., Oct. 6, 2022 /PRNewswire/ -- BioMarin Pharmaceutical Inc. (Nasdaq:BMRN) today announced its decision 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™ (valoctocogene roxaparvovec) in the U.S., and drive core infrastructure optimization. This redesign simplifies the organization, creates efficiencies, reduces the average management layers across the organization and prioritizes and heightens the capabilities required to achieve critical business needs of the future. As a result, this decision will involve a reduction in force of approximately 120 employees, or roughly four percent of the global workforce.
For over two decades, BioMarin has established industry leadership in genetics and molecular biology resulting in the rapid discovery, development, and commercialization of eight approved therapies, mostly in ultra-rare diseases. Having successfully evolved the pipeline to treat larger genetic conditions, including BioMarin's recent successful global launch of VOXZOGO® (vosoritide) and the European approval of Roctavian, the Company has transitioned into a leading, large-scale global biopharmaceutical company.
"We want to recognize everyone impacted by this initiative for their contributions on behalf of the patients we serve. Change is necessary to fulfill our commitment to operating the business in the best interest of our patients, shareholders, and other stakeholders. This requires that our organization is the right size, has the right structure, and has the right focus to operate with maximum effectiveness and efficiency," said Jean-Jacques Bienaimé, Chairman and CEO of BioMarin. "This change allows us to continue building upon our core strength in genetic discovery to have a transformative impact on the lives of even more patients."
While the focus of the effort was reshaping the organization for operational effectiveness and efficiency, the reduction in force will result in financial savings of approximately
Impacted employees have been notified as of this week, and they have begun the transition process that will be fully supported by the Company. Most of the reduction will come from BioMarin's U.S. operations and the reductions are expected to be substantially completed by December 31, 2022. As a result of the reduction in force, the Company will incur total estimated pre-tax charges of approximately
About BioMarin
BioMarin is a global biotechnology company that develops and commercializes innovative therapies for people with serious and life-threatening rare diseases and medical conditions. The Company selects product candidates for diseases and conditions that represent a significant unmet medical need, have well-understood biology and provide an opportunity to be first-to-market or offer a significant benefit over existing products. The Company's portfolio consists of eight commercial products and multiple clinical and preclinical product candidates for the treatment of various diseases. For additional information, please visit www.biomarin.com.
Forward-Looking Statement
This press release contains forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc. (BioMarin), including, without limitation, statements regarding the intended benefits of the Company's organizational redesign, including the Company being able 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., drive core infrastructure optimization, simplify the organization, create efficiencies, reduce the average management layers across the organization, prioritize and heighten the capabilities required to achieve critical business needs of the future and continue building upon its core strength in genetic discovery to have a transformative impact on the lives of even more patients; the number of employees impacted by the reduction in force; the Company's expectations for financial savings beginning in 2023, the Company's plans for reinvesting a significant portion of such savings in its clinical development portfolio, early-stage pipeline, and Roctavian and Voxzogo launches and the expectation that any remaining savings will contribute to the Company's goal of increasing profitability and expanding operating margins; and the Company's expectations regarding the estimated costs, the timing of such costs, and the timing of completion of the reduction in force. These forward-looking statements are predictions and involve risks and uncertainties such that actual results may differ materially from these statements. These risks and uncertainties include, among others: the assumptions underlying the Company's expected benefits and the estimates of future cost savings and expenses associated with the organizational redesign and reduction in force prove inaccurate, the reduction in force results in less costs savings than projected, the Company incurs greater than estimated expenses in connection with the reduction in force, the Company's business, financial condition or operating results are adversely affected by the reduction in force, and those factors detailed in BioMarin's filings with the Securities and Exchange Commission ("SEC"), including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 as such factors may be updated by any subsequent reports. Stockholders are urged not to place undue reliance on forward-looking statements, which speak only as of the date hereof. BioMarin is under no obligation, and expressly disclaims any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise.
BioMarin® is a registered trademark of BioMarin Pharmaceutical Inc.
Contacts: | |
Investors | Media |
Traci McCarty | Debra Charlesworth |
BioMarin Pharmaceutical Inc. | BioMarin Pharmaceutical Inc. |
(415) 455-7558 | (415) 455-7451 |
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SOURCE BioMarin Pharmaceutical Inc.
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