AstraZeneca to cut another 8,000 jobs as part of $1.8 billion cost-cutting program; unveils new R&D model

Anglo-Swedish drug major AstraZeneca, along with revealing 2009 financial results as reported yesterday, when it warned of a likely slowdown in 2010 earnings and revenues, and beyond, has announced a further round of job cuts - about 8,000 over the next four years - on top of the 12,600 already announced, as the company also braces itself for generic competition.

The company's share price dropped 4.6% to £29.05 by the close of trading last night, dragging down several other European pharmaceutical stocks of firms yet to report 2009 figures, including Germany's Merck KGaA, which declined 2.35 TO 63.68 EUROS, AND France's Sanofi-Aventis, which slipped 2.1% to 52.68 euros.

Consultation process has started and a spokeswoman said the job losses would be confirmed in 'weeks rather than months'. Up to 3,500 jobs are going in R&D as AstraZeneca tries to concentrate its efforts on its more profitable drugs and treatments. A sizeable proportion of the group's R&D is in the UK. Other job losses will range from the supply chain through manufacturing, distribution, sales and marketing.