AstraZeneca to invest in strategic R&D centres in the UK, Sweden and US  

AstraZeneca has announced plans to invest in strategic research and development centres in the UK, the US and Sweden to improve pipeline productivity and to establish the company as a global leader in biopharmaceutical innovation. The proposals are designed to:

• Locate more of the company’s scientists close to globally recognised bioscience clusters, making it easier to access world-class talent and opportunities for collaboration and partnerships;

• Bring teams together to improve collaboration and to create a more vibrant environment that puts science and the patient at the heart of everything the company does;

• Simplify the company’s footprint to reduce complexity and eliminate unnecessary cost.

Under the plans, AstraZeneca’s small molecule and biologics R&D activities will be concentrated in three strategic centres: Cambridge, UK; Gaithersburg, US; and Mölndal, Sweden. The proposals are expected to be fully implemented by 2016.

Globally, over the 2013-2016 period, the proposed investment and associated changes will lead to the relocation of nearly 2,500 roles and an overall estimated reduction in headcount in the region of 1,600 roles. The vast majority of these will be in the UK and the US. The programme is expected to incur $1.4 billion in one-time restructuring charges, of which $800 million are likely to be cash costs. In addition, the company will invest approximately $500 million in establishing the new centre in Cambridge. Annualised benefits of approximately $190 million are expected by 2016.