AstraZeneca to make job cuts
AstraZeneca, the Anglo-Swedish drugmaker, is to cut 8,000 jobs over the next four years as part of a US$1.9bn restructuring as it faces falling sales from a loss of market exclusivity for drugs including Arimidex.
AstraZeneca, the Anglo-Swedish drugmaker, is to cut 8,000 jobs over the next four years as part of a US$1.9bn restructuring as it faces falling sales from a loss of market exclusivity for drugs including Arimidex.
David Brennan, chief executive, said the company delivered a "strong financial performance" in 2009, exceeding targets set at the beginning of the year. Sales rose by 7% at constant exchange rates to US$32.8bn. Pre-tax profit also increased, to US$10.8bn from US$8.7bn.
"Our plans for the next five years confirm our commitment to research-based, innovative biopharmaceuticals," said Brennan.
AstraZeneca has five projects awaiting regulatory approval and added four late-stage development projects during the year.
Going forward, the company said it would improve productivity in r&d and undertake additional restructuring in this area. These plans include a "reduction in the number of disease area targets, a continued focus on externalisation, some consolidation of our activities onto a smaller r&d site footprint and other efficiency measures".
AstraZeneca said approximately 3,500 r&d jobs would be affected by this programme, but after taking into account people who will be relocated to other sites, investment in new skills and further expansion of its biologics activities, the actual job losses in r&d could be less than 2,000.
The company forecasts that sales will range between US$28-US$34bn per annum over the next five years.
In order to offset the impact of the loss of market exclusivity on a number of products, AstraZeneca plans to grow in emerging markets such as India, supported by an expansion into branded generics.
