R&D? We Don't Need No Stinkin' R&D! Says AstraZeneca's Salesman CEO
AstraZeneca (AZN) said today that it would end R&D in 10 disease areas and limit vaccine research; cuts include psychiatry, acid reflux, thrombosis, and hepatitis C. About 3,500 of the company's 65,000 jobs will go as a result. The company is aiming to ax 10,400 jobs through 2013.
AZ follows Pfizer (PFE) as one of the giant drug companies that sees R&D as an expense rather than an investment. At least one Wall Street analyst is worried that Big Pharma is shooting its future self in the foot: ultimately, no R&D means no drugs. The strategy seems to be that promising new molecules can be acquired from smaller companies if need be.
It will not be lost on researchers at AZ that CEO David Brennan is not a drug scientist; he came up through the sales side of the company.
The following diseases will no longer receive attention from AZ: thrombosis (cardiovascular); acid reflux (gastrointestinal); ovarian and bladder cancers (oncology); systemic scleroderma (inflammation); schizophrenia, bipolar disorder, depression and anxiety (neuroscience); hepatitis C and vaccines other than respiratory syncytial virus and influenza (infection).
According to AZ and local press, sites affected include:
Wilmington, Del.: 550 jobs gone. AZ said: "early-stage discovery research will be stopped and related activities will be significantly reduced. Some roles will transfer to other sites."
Boston: Boston will grow as it takes on workers from shuttered sites.
England: About 1,200 jobs will go in Loughbrough. Charnwood and a smaller facility acquired with Kudos in Cambridge will close. Arrow Therapeutics in London will be sold for $150 million. R&D at Avlon near Bristol will end. Some roles will go to Macclesfield or Alderley Park. The Alderley Park site will grow as it takes on jobs from closed sites.
Sweden: 900 jobs will be lost in Lund, but the Molndal site will grow as a result.
Anders Ekblom, evp of development said:
AstraZeneca's strategic commitment to investing in innovative research and development is as clear as ever."Clear" indeed! He continued:
We have made real strides in improving our efficiency in recent years, but there is a continuing need to adapt our organisation in anticipation of future challenges. These proposed changes will help us create a more focused, innovative and productive company.Related: