Biogen Sells Lab/Life-Sciences Property for $592 M
Biogen has completed the sale of its 271,000-square-foot laboratory/life sciences property in Cambridge, Massachusetts, to BXP, a commercial real estate developer and property management company, for $592 million. Following the sale, Biogen signed a lease for and will continue to occupy the entire property through April 2028.
Additionally, BXP and Biogen terminated their existing lease agreement at an adjacent six-story, 195,000-square-foot property in Cambridge, UK. BXP is proceeding with the conversion and expansion of the property to 240,000 square feet of laboratory/life sciences space to a separate, undisclosed life-sciences company.
Biogen is proceeding with a $1-billion cost-reduction plan. In May (May 2022), following lower-than-expected results and diminished prospects for its Alzheimer’s drug, Aduhelm (aducanumab), once touted as a potential blockbuster, Biogen announced that its CEO was stepping down, and the company would implement a $500-million cost-reduction program, which involves substantially eliminating the commercial infrastructure for the drug. The $500-million is in addition to further cost-reductions announced by the company in December (December 2021) to bring its total annualized cost-savings to $1 billion.