New CEO to announce outcome of new restructuring plan in Jan Feb, what's he going to say?
If AZ take a leaf out of Pfizer's book - and pharma companies often follow in each others footsteps - is that the sites which are chosen to close are the ones that allow management to make up the numbers reductions required. The past productivity of the sites is rarely considered - note Sandwich and Ann Arbor closed, whilst Groton survived. Thrown into the mix is also a large element of Sacred Cow preference i.e. Groton. TAs can always be transferred, employees offered relocations etc.
Good luck to all. Let's hope for the sake of the industry that PS is able to save the company.
Leif is Chairman of the Nomination and Governance Committee, and a member of the Remuneration Committee. I doubt he has much say in the direction of the company........
But with Leif Johansson in the chair. Will molndal survive?
I've heard that in an effort to maintain a presence in the UK whilst reducing the footprint staff at AP whose surnames start with the letters L-Z will be offered relocation to a newly acquired state-of-the art purpose built drug discovery and development facility just off the A6 in Loughborough. This facility has been bought by AZ for the bargain price of $15.1 million (this is a standard unit of currency in AZ) All staff will be offered 15 years salary plus expenses to move. Sorry to sound facetious but as an ex-AZer the idea that logic will be the driving force behind any more restructuring is hard to believe. Good luck to all the good folk still remaining at AZ on Monday, all of us who have been through it will be thinking of you I'm sure.
The clue is in the name of this site blog, "Rumor Mill"
"Where does Respiratory fit in ?"
Soriot has stated it's one of his priorities so is likely to survive
Come on stop now, all this crap makes need the toilet. It should have said acquisition before ;-} What will be will be, sad as it may turn out (or not for some}
I'll be in the Wilmington restaurant at 9am on Monday, expecting to hear that my job has gone, or moved to Gaithersburg or Boston.
Nearly 20 years in the company. Should be an interesting ride for everyone.
Good luck to all !
Where does Respiratory fit in ?
Medi to get integrated with AP to get the large and small molecule oncology portfolio in one place (better target validation facilities, and better screening and GSA/DMPK support).
Cambridge site closed. CVGI and infection goes virtual,molndal closed or reduced to virtual-imed staff levels (only one Swede on the SET now!).
Aquisition that shouls sya!
Think that's a reasonable call, with an aquistition later in the year, good luck all Azers.
My call is:
Small molecules reduced to 2 sites (Boston and Molndal; close Bangalore and AP)
Medimmune 2 sites (Gaithesberg and Cambridge UK)
Development: Close AP.
This gets the numbers and sites down to something that can be sustained post- Crestor and Nexium patent cliff. It retains presence in US, UK and Sweden.
Oncology to be moved to boston? Huge reduction at cvgi?
"The hard to copy (e.g. Symbicort) and off paten AZ products are counting for about 13 billon US dollars of sales out of a total revenue of 27.9 billon US dollar. So there is a sound future for AZ post Crestor patent expiration 2016-2017.Nexium is newly launched in Japan so even though the US Nexium patent protection will eventually fall in the coming years there will be good revenues form Nexium post 2014."
I don't think anyone is suggesting that AZ will have NO revenue after the Nexium and Crestor patents have expired by 2016. Analysts have been forecasting around a 40% drop in revenue, which still leaves a revenue of $15bn to $20bn - not an insignificant sum, just not enough to support a company that was built to operate on revenues of $35bn. As a previous poster pointed out - if revenues drop then the cost base has to drop accordingly.
The hard to copy (e.g. Symbicort) and off paten AZ products are counting for about 13 billon US dollars of sales out of a total revenue of 27.9 billon US dollar. So there is a sound future for AZ post Crestor patent expiration 2016-2017.
If something changes there is. 27.9 billion sales yielded 6 billion profit, meaning the cost of running the Company was 22 billion in 2012. 13 billion + Nexium Japan won't cut it.
Let's face it AZ's strategy of going for Blockbuster drugs has backfired big time. That's down to executive strategy decisions hat nobody at the bench or located at any of the sites hit so far can influence. Unfortunately it's those of us working within R&D who have/will suffer the consequences. Diversity is the key to survival in the modern pharma world. Novartis are a greatbexa example of how to run a modern pharma, diverse, streamlined & a scientific culture will pay off. Good luck to all AZ colleagues on Monday.
The hard to copy (e.g. Symbicort) and off paten AZ products are counting for about 13 billon US dollars of sales out of a total revenue of 27.9 billon US dollar. So there is a sound future for AZ post Crestor patent expiration 2016-2017.Nexium is newly launched in Japan so even though the US Nexium patent protection will eventually fall in the coming years there will be good revenues form Nexium post 2014.
"Although all sites have failed to deliver adequate numbers of new products, some have failed more than others, so I hope this is recognised in any announcements next week"
Out of interest, which sites do you think have failed less than the others? And what have they delivered to justify any recognition?
Unfortunately the real people responsible for the mess have long since moved on to other jobs, gone with a golden hand shake, retired or are currently sucking up to the new CEO trying to make themselves invaluable. If AZ is to move on PS has got to be smart enough and brave enough to see through all this. I hope he is
Wake up, smell the coffee, take the money and run like the wind.
It's shit being a bench scientist at AZ. R&D are constantly blamed for the company's current state
I don't think anyone is 'blaming' R&D. The bottom line is the Company is not sustainable in its present form post Nexium and Crestor patent expiry, which is less than 3 years away. If we stay as we are, costs will exceed revenue and that's 'Goodnight Vienna' for any business.
"Remember, a redundancy package from AZ is the springboard to a happier life."
That certainly is true for me I left the last round. Turned down a relocation offer, had the package and found a new much more satisfying job. I don't know how safe it is in the long run but at least today a lot safer than at AZ.
It's shit being a bench scientist at AZ. R&D are constantly blamed for the company's current state and yet the bench scientists are all trained in the same handful of European and American research institutes and universities (most RAE 5* university research departments). The bench scientists at Novartis and GSK are exactly the same as those found in the handful of labs left at AZ. The major issue at AZ is having managers who are failed scientists. Even the mighty Mene has a pretty mediocre scientific career.
Those who can do, those who can't manage! Until we break that cycle the company will continue to flounder and we'll keep having these announcements until Mene comes and turns the lights out at AP!
Remember, a redundancy package from AZ is the springboard to a happier life. Only feel aggrieved if you "survive" the cull!
AZ avoided the cycles of job cuts and cost savings for many years as other pharma reduced headcount, research and sites, but they're more than making uo for lost time now.
Yawn, another year, another announcement, another great leadership team...
I put the comment, I feel passionate about AZ, but find its change in culture disturbing, people are no longer valued. I joined as a scientist Band B (now career level C!), do my job well, survived each cull from a team of 15 to 4, based on a manager who did not know how vital our department was (we now have temps to fill in). Within my job I am asked to deal with non-working IT systems, portal for vital information being "down again", dealing with "Sleazy Buy" and "AZ disengage" whilst waiting for my Vista computer to finish its "doughnut of despair" to end before I can do my next email".
If you work hard, deliver and do your best (yes, I have been exceeded in my performance reviews in the last few years). It still doesn't fill you with hope for the future, as mentioned before, some stability and faith by the company is required. My boss is great, but the senior leadership team above may as well be in Mars as for the connection I feel to them. A fear culture doesn't "inspire to innovate", just inspires you to think of what you can use AZ for your next career. AZ is just reaping now what it has planted, mostly sunflowers - thanks Martin! Having "consultants" and "external candidates" has not helped, its disenfranchised those who were hoping for career progression, knowing that your face will not fit unless you have a Roche or Pfizer pedigree.
AZ needs to cut the crap, make a decisive action, but assure those that are left this is the end for at least three years on major restructuring, then there may be some change.
p.s. sorry for the rant- its nothing I have not fed back to the "culture committee" - Yes, and we do have one of them also!
US daylight saving time started last week so Wilmington are now 4 hrs behind GMT - their 9am meeting is at the same time as all our 13:00 town halls in the UK. Good luck everyone.
The 'R' in Wilmington went a few years ago & most of the 'D' went with it then. Its now mainly the USA business centre with some non laboratory 'D' left. I went in one of the previous reorganisation waves so good luck to all those left behind......
Although all sites have failed to deliver adequate numbers of new products, some have failed more than others, so I hope this is recognised in any announcements next week.
If Wilmington R&D is before the rest of the business, then R&D there is gone.
Groups or sites with meetings earlier than the rest of the company should polish up their CVs over the weekend.
Good luck to all.
Yearly deckchair re-arrangements have so far failed to save RMS AstraZeneca. No 3 hold is flooding and it's nose down...
Merger or aquisition + divesting some of the secondary manufacturing sites.
All these reoccuring cuts have been slowing down research and crated an atmosphere of uncertainty. If they'd made a large pre-emptive strike 5 years ago, then they could have let the straff remaining work in peace...
"Yawn, another year, another announcement, another great leadership team... Keep focused on delivering new medicines, though last years restructuring took about a month out of my life going on training on how to fill out forms, interviews, meetings etc. As an annual event how many man hours are lost. hopefully this one will be a large cut to allow the company to move forward. Annual cuts are not constuctive for morale or productivity."
So you're hoping for a large cut, are you? Maybe they will cut YOU off this time. If guys like you represents the general management and/or HR culture at AZ, it doesn't surprise me that the company is going downhill at great speed.
No one in Wilmington seems to know what will be presented on Monday but everyone is concerned. All GMD, IMED, Global Medical Affairs and RDI employees meet in Brandywine Cafe at 9 AM; US Business employees have their meeting at 10:30 AM.
Anyone knows what Monday's meeting is all about?
good luck to all those still at AZ, I sympathise with what you're going through yet again.
From an Ex-AZer
Macc site to be sold to a CMO?
Yawn, another year, another announcement, another great leadership team... Keep focused on delivering new medicines, though last years restructuring took about a month out of my life going on training on how to fill out forms, interviews, meetings etc. As an annual event how many man hours are lost. hopefully this one will be a large cut to allow the company to move forward. Annual cuts are not constuctive for morale or productivity.
Good luck. Looks like it's not just R&D getting a kicking with Ops having a marquee shindig too.
Yes, being a 2010 tent exile, I will be thinking about you all. Lycka till.
This sounds ominous...
I was one of those who experienced the same thing in February last year. Now I've moved on with my life and career, and I'm happy I no longer need to dread the AZ management announcements.
I keep my fingers crossed for you guys still at AZ that things will turn out for the best, somewhere, somehow.
18th March, 13:00 GMT
All staff announcements, UK, SE, US, etc.. booked in staff diaries
Naivety about the mess we're in, must stop here...
Yes indeed ,Crestor very important for AZ, however it is not as profitable as one could hope. I have seen public Shinogi royalty figures on approx 36% or Crestors total sales.
Marquees are being erected at Alderley for meeting on 18th followed by meeting with executive committee. Looks bad
New Opportunities iMED to go (small cut)
DMPK to merge with safety (small cut)
Medimmune to be "Integrated" (possibly medium cut)
Diabetes marketing to merge with BMS i US (small cut)
Have I missed something or is that all?
If I was an investor I wouldn't be stunned...
Like predictive inovation
Innovative iMED is tautology
Dormer seems to be senior guy in innovative iMed. If this is going then we know why he is
Assuming this is correct does this mean the whole of the iMed is going or merely reshaping. Also any idea why the CMO is going or is he getting the blamek for all the failures in Ph3?
"Charles Dormer (Chief of Staff, whatever that is) to go"
and that is probably why he is going! if you can't describe your role then you don't have one.
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