First wave of AstraZeneca’s CNS R&D group gets the ax

Posted under AstraZeneca, Blog, Companies, David Brennan, Diagnostics, Europe, Funding, layoffs, Medical Devices, Medical Supply, Pharmaceuticals, R&D, Startups, Universities, Videos by john

AstraZeneca isn't wasting any time in pushing ahead with draconian cuts to its neuroscience work in its big R&D hub south of Stockholm. The first 50 scientists have already been shown the door, according to local news reports, part of the first wave of 400 job cuts as AstraZeneca ($AZN) slashes a total of 1,100 positions at the research complex.

"The first 50 left two weeks ago. Some will leave during the summer and others early this autumn and the whole move should be completed in December," AstraZeneca spokesperson Ann-Leena Mikiver told news agency TT. AstraZeneca has been inviting in companies to interview some of the exiting staffers, reports The Local, an English language news service. And the pharma giant is also offering advice to would-be entrepreneurs during "start-up days."

Following a number of rival pharma companies like GlaxoSmithKline ($GSK), AstraZeneca has been radically downsizing its exposure in the neurosciences, a field that has delivered far more disappointments than new products in recent years. In place of its big facility AstraZeneca will go "virtual" with 40 to 50 scientists working out of Boston and Cambridge, U.K., collaborating with academics and other biotechs around the world.

AstraZeneca had already cut more than 20,000 workers in the last 5 years before announcing plans to shed another 7,300 staffers worldwide. Generic competition has begun to bite deep into profits and AstraZeneca has been given harsh reviews for its late-stage pipeline, a situation that helped inspire the recent departure of CEO David Brennan.

- here's the story from The Local

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Buzz: Big Pharma suitors line up for a look at Amylin’s books

Posted under Amylin pharmaceuticals, AstraZeneca, Blog, Bristol-Myers Squibb, Carl Icahn, Companies, Diagnostics, Funding, M&A, Medical Devices, Medical Supply, Pharmaceuticals, Roche, Sanofi, Startups, Universities, Videos by john

One of the cardinal rules involved in deal-making focuses on the need to get as many buyers to the negotiating table as possible. The next big rule: Make sure everyone knows who's interested in bidding.

Amylin--while maintaining a strict no comment policy ever since initial reports appeared the Bristol-Myers Squibb ($BMY) had made an offer--has scored on both points with a Bloomberg report out this morning assessing the line of potential bidders queuing up to take a confidential look at the books. By the business news service's count, fed by an inside source, Pfizer ($PFE), AstraZeneca ($AZN) and Sanofi ($SNY) have all signed confidentiality agreements, joining Merck ($MRK), Takeda, Roche ($RHHBY) and Bristol-Myers Squibb at the auction block.

With a market cap of $4 billion, Amylin ($AMLN) can be bought for a reasonable enough sum, offering up product revenue and a background in diabetes development that would complement quite a few potential acquirers. Amylin spent $162 million last year on R&D. But its newly approved Bydureon could prove a much tougher sale than some would like to take on.

"Diabetes is an area companies either want a position in or want a stronger position in," Deutsche Bank analyst Mark Clark tells Bloomberg. "Amylin is not a massive financial stretch so it comes down to what companies' alternatives are, whether there are other synergies involved and who it makes the most sense to. Some companies are more desperate for revenue sources than others."  

That last point on desperation indicates that AstraZeneca, at least, may be more willing than the others to pay a premium for Amylin. Sanofi, meanwhile, is reportedly undeterred that its experimental lixisenatide would compete with Amylin's drug roster. And that could leave Amylin--along with its advisers from Credit Suisse and Goldman Sachs--right where it wants to be: At the center of a bidding war. Even Carl Icahn would have to admire that strategy.

- here's the story from Bloomberg

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GSK chief rules out AstraZeneca buyout

Posted under Andrew Witty, AstraZeneca, Blog, Companies, David Brennan, Diagnostics, Europe, Funding, GlaxoSmithKline, M&A, Medical Devices, Medical Supply, Pharmaceuticals, Startups, Universities, Videos by john

GSK ($GSK) chief Andrew Witty (photo) quickly dismissed any idle speculation that he might be interested in buying the struggling British rival AstraZeneca ($AZN). A buyout, he said, would be "very distracting". Some analysts have been wondering if David Brennan's departure at Astra would set the stage for a big merger. But such megadeals are in distinct disfavor right now. Story

GSK chief rules out AstraZeneca buyout

Posted under Andrew Witty, AstraZeneca, Blog, Companies, David Brennan, Diagnostics, Europe, Funding, GlaxoSmithKline, M&A, Medical Devices, Medical Supply, Pharmaceuticals, Startups, Universities, Videos by john

GSK ($GSK) chief Andrew Witty (photo) quickly dismissed any idle speculation that he might be interested in buying the struggling British rival AstraZeneca ($AZN). A buyout, he said, would be "very distracting". Some analysts have been wondering if David Brennan's departure at Astra would set the stage for a big merger. But such megadeals are in distinct disfavor right now. Story