Biogen Idec, one of the few legacy biotechnology companies that has not been consumed by big pharma, will lay-off about 650 employees, close its facilities in San Diego, and slash research programs in an effort to trim costs, the Massachusetts-based company announced earlier today.

The restructuring was orchestrated by new chief executive George Scangos (shown, at right), who seems to have been busy since his appointment was announced in June. Shareholders, most notably corporate raider Carl Icahn, have recently been pressuring Biogen to focus its resources. “We are a mile wide and an inch deep,” agreed Scangos in a conference call today.

To improve focus, the company will jettison 11 research programs, including its cardiovascular and oncology projects, in favour of its core strength: neurology. Of the seven drug candidates Biogen has in, or near, Phase III trials, four are against multiple sclerosis and one is against Lou Gehrig’s disease. (The other two are potential treatments for haemophilia.)

The cuts are expected to save $300 million a year for Biogen, which is listed on the NASDAQ stock exchange as BIIB. Despite the criticisms and the cutbacks, the company says it plans to launch five new products by 2015. “On a relative basis, we see BIIB’s pipeline as one of the strongest in the industry,” wrote Joshua Schimmer, an analyst with Leerink Swann, in a note following the announcement.

Image: Biogen Idec