Biogen Idec Inc. (BIIB) Chief Executive George Scangos is trying to solve a problem of his own creation: He must replenish an early-stage drug research pipeline that he decimated after taking over the biotechnology company in 2010.

Scangos and his research chief eliminated about 17 early-stage drug projects in 2010 and last year to hone the company's focus, leaving it with only about four early-stage compounds. Biogen exited oncology and cardiovascular research and is now targeting drugs to treat neurological and autoimmune conditions.

"We didn't want to fund projects that were unlikely to generate value," Scangos said in an interview on the sidelines of the J.P. Morgan health-care conference in San Francisco this week. The annual conference serves as a big dance floor for drug companies seeking partners and acquisitions.

BIogen's late-stage pipeline is in relatively better shape, including a potential new oral treatment for multiple sclerosis, BG-12, that could be a big product. The once-troubled company's stock price has soared about 70% over the past year amid rising expectations for BG-12 and other drug candidates, including one for the degenerative disease amyotrophic lateral sclerosis, also known as Lou Gehrig's disease.

But even if Biogen's late-stage pipeline delivers successful new drugs soon, the company needs more compounds in early-stage testing to sustain long-term growth. So it is licensing drugs from other companies.

"We're starting to rebuild the pipeline, but we still have more work to do," Scangos said.

In October, Biogen licensed potential treatments for rheumatoid arthritis and systemic lupus erythematosus from Portola Pharmaceuticals Inc., and last week Biogen said it licensed from Isis Pharmaceuticals Inc. (ISIS) a drug to treat spinal muscular atrophy.

Biogen, of Weston, Mass., now has about seven early-stage research projects, but needs to do more. Scangos said Biogen will pursue more such collaborations, primarily in neurology, autoimmunity and hemophilia. It will be a gradual process: "We won't do 10 a year," he said.

-By Peter Loftus, Dow Jones Newswires; 215-982-5581; peter.loftus@dowjones.com

--Jon Kamp contributed to this article.

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