Biogen is cutting 11% of its workforce.
The stock jumped by as much as 7% in premarket trading on Wednesday after being halted ahead of the announcement, which came with the biotech company’s third-quarter earnings results.
According to a press release, Biogen expects to complete the majority of the layoffs by the end of 2015, and is notifying affected employees.
In all, the restructuring process will cost Biogen up to $95 million in the fourth quarter.
Biogen also discontinued a number of programs, including the Phase 3 program for Tecfidera, a multiple sclerosis drug.
The company also announced that the results from a phase-3 study of natalizumab, another multiple sclerosis drug, did not meet its primary or secondary endpoints.
Biogen reported revenues of $2.8 billion, up 11% year-on-year, and diluted earnings per share of $4.15. Analysts had estimated revenues of $2.64 billion and adjusted EPS of $2.77, according to Bloomberg.
The biotech sector has been slammed this year on concerns about price gouging. Biogen shares are down 21% year-to-date.