| Analysts believe that upcoming job cuts made by AstraZeneca worldwide will affect as many as 1,500 jobs held by UK workers. The company is cutting 8,000 jobs in total. Research and development operations are located in Harnwood, Cambridge, Macclesfield, Cheshire; and near Loughborough. The cut will eliminate 3,500 positions from research and development in attempt to decrease costs.
Chief executive David Brennan confirmed that they would begin outsourcing more research and development, mainly the engine room of medicine companies. He also said that because employees from the United Kingdom, the United States, and Europe make up largest percentage of workers, one could expect the most job cuts to come from there.
Shares in the company have also fallen 140p to 2905p, costing £2 billion and making it the greatest faller in the FTSE 100.
Asthma medication Pulmicort and Arimidex, the breast cancer drug, are two of AstraZeneca’s main drugs, and both have patent protections which expire this year. The company has no new drugs with which they plan to replace the sales of Pulmicort and Arimidex.
As the future of health care in America is still unclear, Mr. Brennan believes that “2010 is going to be challenging year.” According to Brennan, the company plans to focus on outsourcing the development of drugs within the US and Europre, although they can also be outsourced to other countries, such as China.
by Kate Barber
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