When Amgen Inc. last week dismissed 226 researchers and R&D support staff, some local biotech executives, especially veterans of past Amgen cutbacks, said it could pump life into the region’s life science industry by encouraging the formation of startups.
Consider Sanjay Khare, who was scientific director of the company’s inflammation research unit but took a buy-out during the company’s last major restructuring in 2007. He went on to form ImmuneGene Inc. of Thousand Oaks, which is working on cancer treatments and employs eight people, including other Amgen alum.
“I always had entrepreneurial inclinations, but when you have a comfortable job with a paycheck every two weeks, it’s hard to make the jump. I’ve never regretted it,” said Khare, who will be seeking his first venture capital at next month’s SoCalBio Investor Conference.
Another Amgen alum, John Swither left the company in 2007 and became chief financial officer at Calabasas’ Kythera Biopharmaceuticals Inc., which had been started two years earlier by a former Amgen colleague.
“It does take a special person to decide to take a leap into becoming an entrepreneur,” Swither said. “But for those who have been willing to work hard and have an innovative new idea, it can be done.”
Amgen, founded in 1980, is among the world’s largest biotechs by market cap. With 6,200 employees at its sprawling Conejo Valley campus prior to the layoffs, the company is the region’s 20th largest private-sector employer.
For most of its history, a job at the company was like working in Detroit during the heyday of the Big Three automakers – a good salary and plenty of security. In addition, Amgen’s benefits included stock options that enabled many longtime employees to become millionaires even as they continued working in their laboratories.
That changed in 2007 when the company eliminated more than 675 local jobs – among 2,600 worldwide – in order to cut costs during a prolonged sales slump of its flagship anemia drugs.
Last week, Amgen said its latest decision to cut its work force was part of a plan to shift resources toward less risky but more expensive later-stage research. Worldwide, 380 employees – most of them involved in early stage research on potentially cutting-edge technologies – were given pink slips.
At least some of the workers may be able to find jobs at other firms. The Southern California Biomedical Council trade group currently lists more than 100 openings at biotech and medical device companies in Los Angeles, Orange and Ventura counties.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Amgen's Alums Poised to Fuel Boom
- Biotech Sees VC Cash Flow
- Blow to Biotech Could Be Brief
- Life Sciences Group Wants to Live in Los Angeles
- Fat Drug Maker’s Job Cuts May Thin Out Scene
- Hatching Innovation
- UCLA Spinoff Could Go for $500 Million
- Vested in Biotech: Doumani, Business Center Boons for UCLA