AstraZeneca posts strong sales and earnings but announces 3,000 job cuts
Anglo-Swedish pharmaceutical major AstraZeneca had a busy start to February, announcing much improved 2006 fourth-quarter and full-year sales and earnings, as well as the acquisition of Arrow Therapeutics and two licensing deals to expand its product pipeline (Marketletter February 5), but surprised the markets by also revealing plans for 3,000 job cuts (4.6% of the current workforce) over the next three years, as a part of the firm's $500.0 million revamp of its supply chain and aimed at boosting productivity and achieving savings.
Nevertheless, there was a positive reaction, with the company's shares rising 2.2% to L29.03 on the day of the press conference, February 1, with investors also encouraged by chief executive David Brennan issuing forward guidance (something that AstraZeneca has not done traditionally), saying that he expects sales revenue growth in the high single digits and setting a target for earnings per share of $3.80-$4.05 for 2007.
2006 pretax profit rises 28%
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Login to your accountTry before you buy
Free
7 day trial access
- All the news that moves the needle in pharma and biotech
- Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
- Receive The Pharma Letter daily news bulletin, free forever.
Become a subscriber
£820
Or £77 per month
- Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
- Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
- Daily roundup of key events in pharma and biotech.
- Monthly in-depth briefings on Boardroom appointments and M&A news.
- Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed
Chairman, Sanofi Aventis UK
Today's issue
Company Spotlight
Copyright © The Pharma Letter 2025 | Headless Content Management with Blaze