Anglo-Swedish drugmaker AstraZeneca plans 1,400 job cuts and is closing three plants around Europe as it joins others in the sector tackling increased competition and cost pressures.
A spokesman for the company said the move will have no impact on its 100 employees in Ireland. Their Irish-based staff are involved in marketing and sales work. The company has no manufacturing operations here.
AstraZeneca also said it had also won a temporary court order blocking a copycat version of a key asthma drug - which prompted a profit warning from the company the previous day - but said it was closing facilities at Porrino in Spain, Destelbergen in Belgium and Umea in northern Sweden.
Jobs would also be cut at its operations in Macclesfield in northwest England and Sodertalje in Sweden, it said in a statement today. The staff cuts would be carried out through to 2013 after local negotiations, it added.
Drug companies worldwide have eliminated thousands of jobs in the past two years as a lack of significant new drugs, declining sales of lucrative flagship franchises and fierce competition have cut into profits.
AstraZeneca said it had been granted a temporary US court order suspending sales of a generic version of its asthma drug Pulmicort by rival Teva. Under the ruling, AstraZeneca and partner Par Pharmaceuticals will also suspend sales of their generic version of Pulmicort.
The restraining order remains in force until further order of the court. A preliminary injunction hearing is scheduled for November 25 with a full court case due to start on January 12th.
AstraZeneca warned yesterday its full-year earnings would be at the lower end of its previously stated range as a result of the launch of generic Pulmicort, hammering its shares.
AstraZenecca said its forecast for restructuring costs remained unchanged for 2008 and would be updated in connection with the group's full-year results in January.
Pfizer, Merck & Co, GlaxoSmithKline, Wyeth and Bristol-Myers Squibb are among other leading firms to have cut jobs significantly.
Agencies