AstraZeneca to Cut More Than 7,600 Jobs Due to Acquisition Costs

AstraZeneca will cut more than 7,600 jobs, more than double its previously announced number, after its second quarter profit fell 11 percent because of costs related to the company’s acquisition of MedImmune, the company announced.

Earlier this year, the company said it would cut 3,000 jobs by 2010 to help with anticipated losses from generic competition. AstraZeneca will cut 700 R&D positions, 1,800 information systems and business infrastructure jobs, 1,800 in European sales and marketing jobs and 3,300 in operations, company CEO David Brennan said.

AstraZeneca is acquiring MedImmune for $15.6 billion to increase its share in the biologics and vaccines markets, augment its pipeline and improve the company’s ability to develop products more quickly, the company said. When it announced the deal, AstraZeneca predicted the move would bring in $500 million in revenue annually by 2009.

Acquiring MedImmune increased second-quarter sales by $24 million, but also brought an operating loss of $103 million, the company said.

AstraZeneca currently has eight products in Phase III clinical trials and is “well positioned to deliver its biologics strategy on a greatly accelerated timeline,” Brennan said.