AstraZeneca to cut more jobs as sales stagnate
pharmafile | January 30, 2009 | News story | Sales and Marketing |Â Â AZ, restructureÂ
AstraZeneca's revenues will see virtually no growth in 2009, and the company has extended its cost cutting programme.
Chief executive David Brennan announced that its restructuring programme is to be expanded, with the number of job cuts doubling to approximately 15,000 by 2013.
AstraZeneca started its job-cutting programme in 2007, but like many competitors is increasing the redundancies to further slim down, become more efficient and maintain profits.
Announcing Q4 and full year sales for 2008, the company saw sales rise 3% overall over the year, but fourth-quarter net income dropped slightly from $1.27 billion a year ago to $1.25bn.
Exchange rate movements hit the company in the fourth quarter, with sales increasing by 4% at constant exchange rates but unchanged in effect.
AstraZeneca's biggest seller, the anti-ulcer drug Nexium, grew 2% in the fourth quarter, but overall its sales for 2008 saw virtually no growth. Full year revenues from Nexium fell 8% to $3bn in the US, as more prescribers switched to cheaper generic rivals.
Cholesterol treatment Crestor fared much better, with sales up in all markets. Fourth quarter sales in the US rose 27% to $490 million with the full year figures up 18% to $1.6bn.
The increase in prescriptions was fuelled by the promotion of the brand's atherosclerosis indication, the company said.
Anti-psychotic drug Seroquel was also a strong performer, with sales up 8% to $831m in the fourth quarter. US sales for 2008 were $3bn, 5% ahead of last year. The company says that 44% of its prescription growth was down to Seroquel XR.
But AstraZeneca faces stiff generics competition over the next few years, with chief executive David Brennan suggesting that the market has "never been tougher".
He added: "We are also making good headway in further improving the efficiency of our organisation.
"The expansion in the scope of our restructuring efforts is another important step towards sustaining our long-term competitiveness."
The company also pointed to several projects in the pipeline such as MedImmune's licence application for motavizumab, for the prevention of serious respiratory syncytial virus disease.
It is also working on onglyzatm, a new diabetes compound being developed with Bristol-Myers Squibb that is also waiting for regulatory approval in the US and in Europe.
Later this year AstraZeneca plans several more regulatory filings for new chemical entities. These include:
Zactima for the treatment of pre-treated advanced non-small cell lung cancer in combination with chemotherapy
PN400, for the treatment of arthritic pain in patients at risk of developing gastric ulcers
Brilinta (formerly AZD6140), an oral anti-platelet agent to treat acute coronary syndrome.
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