Speculation continues to swirl around AstraZeneca operations in Delaware as the company moves through another restructuring and the departure of a top executive in the U.S. for a top job at a rival company.
AstraZeneca, during its first quarter earnings announcement, affirmed its intentions to stay in Delaware but confirmed it will look for options for its current Fairfax site near Wilmington. The company also operates a distribution hub near Newark and earlier announced an upgrade at that site.
The announcement brought concerns about job cuts, but there were also reports that one business unit might move to Delaware. AstaZeneca also eliminated 1,600 contract sales representative positions.
“…in May, we shared information about how we will sharpen our focus on our three main therapy areas (oncology, respiratory, cardiovascular & metabolic disease). This is a global program happening across the organization to advance our strategy through a sharper focus, allowing us to increase investment in the areas that will drive value now and in the future,” AstraZeneca spokesperson Abigail Bozarth stated in an Email message.
Bozarth went on to write: “These changes will enhance our operational effectiveness and, once implemented by the end of next year, are expected to generate around $1.1 billion in annualized benefits versus 2015.”
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“We are working through the details and cannot provide more information at this time – our first priority is to communicate with employees,” Bozarth wrote. “ Our business is always looking for opportunities to operate smarter and more efficiently while continuing to deliver against our strategic priorities and the size of the workforce will ebb and flow, based on the needs of the business.
Last month, Paul Hudson, who had served as executive vice president, North America and a member of the AZ Executive Committee, joined Swiss-based Novartis as leader of Novartis Pharmaceuticals. The company has undergone a reorganisation that placed Hudson in the key position.
Hudson had earlier worked as leader of AstraZeneca’s Japanese business.
He will serve as leader of Neuroscience, Ophthalmology, Immunology and Dermatology, Respiratory, Cardio-Metabolic and Established Medicines for the company.
Hudson will be based at the global headquarters of the Innovative Medicines Division and the Novartis Pharmaceuticals business unit, which will be in Basel, Switzerland.
AstraZeneca, under CEO Pascal Soriot has undergone a major restructuring that led to the loss of 1,200 jobs in Delaware as cuts were made and some jobs were moved to its MedImmune business in suburban Washington, D..C.
The company moved research and development out of Delaware and had torn down those facilities, despite pleas from the state to keep the facilities.
Soriot replaced David Brennan, who served as CEO of AZ after heading its U.S. Operations.
Soriot has worked to rebuild the pharmaceutical pipeline of the company that has faced “a patent cliff” from pharm actuals that no longer have lost that protection and are now being replaced by generics. AZ, under Soriot, also successfully fought off a takeover offer from rival Pfizer.
The London-based company is building a new headquarters in the university city of Cambridge as part of its transformation effort.
In Delaware, the announcement that the company might move out of its remaining facilities in Fairfax has led to speculation that JPMorgan Chase might look at the property.
The financial services giant purchased the former South Campus of AstraZeneca, and a pedestrian bridge between the AZ and JPMorganChase remains in place. JPMorgan Chase now operates a technology hub at the site.
