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AZ said the staff cuts, part of a planned reduction of around 3,000 jobs or nearly five per cent of its work force, will take place over the next three years as tries to augment the efficiency of its Swedish and
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AZ previously announced that it was to cut 3,000 jobs in a three-year scheme, explaining that cost savings were necessary due to burgeoning generic competition and the impending loss of patent protection for its number one anti-ulcerant drug, Nexium (esomeprazole). In December 2006, approximately GBP 2 billion was wiped off the value of the company after EU authorities revoked a key patent on Nexium four years early. The existing patent originally protected the drug until 2014.
AZ has also revealed it will spend GBP 63.5 million (USD 124.8 million/ EUR 94.2 million) on the construction of a process R&D laboratory at its Macclesfield site, which has already received GBP 250 million of investment since 2001. The function of the existing facility is to launch new products, while it is also the sole global supplier for one of the company's oncology treatments.
The proposed new development will discover and develop manufacturing routes for active ingredients in new medicines and will house 170 staff, including multi-disciplinary teams of chemists, analysts and process engineers, as well as project managers. The new facility will have the capacity to be extended to house a further 50 people. The facility represents the largest single investment to date at the
AZ's current global strategy is to strengthen its new drug pipeline, with the new facility to focus on the company's cancer and anti-infective R&D portfolio, as well as pipeline neurological treatments.
The new facility will link with other major R&D facilities in the
AZ posted a 28 per cent increase in gross profits to rest at USD 8.5 billion in FY06. Sales were up 11 per cent at USD 26.5 billion, driven by its anti-ulcerant, Nexium (esomeprazole), statin Crestor (rosuvastatin) and the schizophrenia drug, Seroquel (quetiapine). AZ expects FY07 growth, posting a 33 per cent rise in earnings per share at USD 3.86 (EUR 2.98/ GBP 1.96), which met analyst expectations.
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