(Reuters) – Biogen Inc said on Tuesday it expected to cut about 1,000 jobs, or about 11% of its workforce, under a new cost-cutting program as the company accelerates the launch of a new Alzheimer’s disease drug in efforts to return to growth.

Investors are pinning their hopes on Lekembi as sales of multiple sclerosis drug Tecfidera are being hit by cheaper generic rivals, while spinal muscular atrophy drug Spinraza faces rival treatments from Novartis and Roche.

Shares of the Massachusetts-based company rose 1.2% to $280.23 in premarket trading.

“Biogen’s (NASDAQ:) business is in transition,” said CEO Christopher Wiehbacher, who was hired in November to help accelerate growth and reverse a series of setbacks for older Alzheimer’s drug EduHelm.

“While we will make significant investments in our new priority pipeline and new product launches, we will also need to invest less in other areas,” he added.

Biogen, which had 8,725 employees worldwide at the end of 2022, expects the new cost-cutting program to reinvest about $300 million in launches and research and development.

Excluding reinvestments, the program aims to reduce net operating expenses by approximately $700 million by 2025.

The company said in April that it would pause or close at least four studies of experimental drugs to focus on more attractive options, including the Lekembi launch and cutting costs.

In the second quarter, the company earned $4.02 per share on an adjusted basis, compared with estimates of $3.77.

Multiple sclerosis treatments Avonex and Vumarity, as well as SMA therapy Spinraza beat analysts’ estimates, while Tecfidera missed expectations as it faces generic rivals.

“We don’t see any unexpected surprises in the second quarter results, which should give investors an opportunity to focus on Alzheimer’s,” he added. Wells Fargo (NYSE:) analyst Mohit Bansal.