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September 6, 2008 12:32:54 AM CDT

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Biotech Giant Slashes Jobs

Posted Aug 16, 07 1:34 AM CDT in US,  Business,  Science & Health,  Technology 

(Newser) – Biotech giant Amgen is slashing spending by $1.9 billion by cutting up to 14 percent of its workforce— 2,600 jobs—and closing some production facilities. The restructuring was triggered by plummeting sales of the company's anemia drug Aranesp. The shake up demonstrates that biotech operations are not immune to the problems that plague traditional drug companies, the Wall Street Journal reports.

US sales of Aranesp fell 19% in the second quarter in the wake of new dosing and reimbursement rules by the federal Medicare agency because of reports of heart attacks at high doses. "It's the first time in our 27-year history we've had to restructure," said Amgen CEO Kevin Sharer. "It's our turn."

Source Wall Street Journal

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The sign outside Amgen Inc.'s entrance as photographed in this July 20, 2006 file photo, in Thousand Oaks, Calif. Amgen Inc. is expected to release quarterly earnings on Monday, April 23, 2007. (AP...   (Associated Press)
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