Major overhaul of AstraZeneca R&D sites, and HQ move, will see 1,600 job cuts

Anglo-Swedish drug major AstraZeneca (LSE: AZN), which is struggling with recent research disappointments and facing a looming $6 billion hit on sales due to patent expiries, has announced plans to invest in strategic R&D centers in the UK, the USA and Sweden, aiming to improve pipeline productivity and to establish the company as a global leader in biopharmaceutical innovation. The company's shares dipped 0.7% to £30.50 following the news.

Under the plans, AstraZeneca’s small molecule and biologics R&D activities will be concentrated in three strategic centres: Cambridge, UK; Gaithersburg, USA; and Molndal, Sweden. The proposals, which are expected to be fully implemented by 2016, have been slammed by the UK’s biggest trade union Unite, which has accused AstraZeneca of creating a skills crisis in the North West of England by draining the region of highly skilled R&D jobs in the middle of an economic downturn. In February 2012 AstraZeneca announced 7,300 job cuts by the end of 2014 as part of a round of cost savings.

Under the plans, AstraZeneca’s small molecule and biologics R&D activities will be concentrated in three strategic centres: Cambridge, UK; Gaithersburg, USA; and Molndal, Sweden. The proposals, which are expected to be fully implemented by 2016, are as follows: