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ASTRAZENECA SHAREPRICE DOWN, MORE JOB LOSES & YET MORE LAWSUITS
Friday, 29th November
AstraZeneca to shed 8,000 jobs as it farms out more R&D work
AstraZeneca is to cut 8,000 jobs worldwide as it embarks on one of the biggest shake-ups seen in the pharmaceutical industry.
Analysts believe that the cuts announced yesterday could lead to the loss of 1,500 jobs in the UK, where AstraZeneca has research and development operations at Macclesfield, Cheshire; Charnwood, near Loughborough, and Cambridge. It will shed 3,500 posts from research and development as it tries to cut costs.
David Brennan, chief executive of the UK’s second-largest pharmaceuticals company, said that it would start outsourcing more of its research and development — traditionally the engine room of medicine companies. Some of that work could go to China. Mr Brennan said: “As the majority of our employees are in the UK, the US and Europe, you could expect more job cuts there.”
Shares in the company fell 140p to 2905p, wiping £2 billion from its market capitalisation and making it the biggest faller in the FTSE 100.
Two of AstraZeneca’s key drugs, the asthma medication Pulmicort and the breast cancer drug Arimidex, lose their patent protection this year and there are no new drugs to replace those sales.