New CEO to announce outcome of new restructuring plan in Jan Feb, what's he going to say?
Agree Macc site very vulnerable without AP. I suspect when whatever it is that is being manufactured at Macc that is too difficult to tech transfer somewhere else is not profitable anymore the manufacturing and science roles will go at Macc. While the site is being used for manufacturing they may as well keep the scientists there as it gives a bit of breathing space to get Cambridge up and running and get any AP staff they want to retain moved and settled before moving recruiting a second wave. Time to stop being complacent good folk of Hurdsfield - don't assume you will keep escaping the chop - your continued presence in the North West makes no sense.
Also suspect the 700 'saved' non-science jobs at AP will disappear too in time... I believe they were only saved because of pressure from George Osbourne.
For those of you unaffected by 2010, 2012 or the latest changes, it's time to wake up and smell the coffee - this is it, if this doesn't work, you're all out of the door.
just come from a meeting where we asked, don't we need planning permission for this site that the land hasn't been purchased yet. No AZ dont need such things!
So a site to be built and ready for habitation by 2016 for over 4k people and car parks! maybe AZ should go into building and give up on drugs if they can go from no plans to a working business in such a short time.
The issue with Macc is that it's an Ops site and therefore relatively cheap for R&D to use as a base. R&D will move out of Macclesfield in due time but only when Ops finally decide to outsource all their secondary manufacturing to CMOs. Even then, AZ are more likely to sell the Ops facilities to a CMO (with a nice 5 year+ supply agreement)and TUPE the staf. In that circumstance, R&D may stay..
Predit that next to close will be the macc. site.It is now more vunerable after Alderly closure.Would have been too much change in the organisation to do it now.
The new CEO needs to get rid of the performance management system (leadership capabilities) and bring in scientific capabilities which are appropriate to a science based industry.
Non-Medi/AZ employees here. CAT were the originators of both Humira and Benlysta, so hard o see how one says hey have done nothing. They have also contributed significanlty to the current Medi pipeline.
Ex-Genetech chief grows biological arm of business. Not really surprising TBH.
What must be really annoying the new CEO is the incompetance of the previous CEO. The Lund site is in the largest bio-hub in europe and had a significant background in R&I. If Soirot was in charge 3 years ago I suspect that Molndal would have been exited and Lund retained and expanded.
I think the Cambridge move is bold and positive move. But plan the location to be more like an "internal science park". Smaller buildings dedicated to delivering the full value chain (sorry..) in one building. Yes, you'd lose some value with duplication but you'd create a new style of working for Big Pharma. And, if all else fails, there's a reasonable chance of selling the site off as a genuine science park!!
Bulletproof - yeah, they thought that at AP too.
Times, they are a changing.
And medi USA has done ??
Fluenz/Flumist isn't a CAT product. It was discovered by an academic, developed by Aviron which was bought by Medi. I agree the CAT site has delivered nothing and seems to be staffed by people who think they are bulletproof.
Humera was a BASF Knoll product. Abbott got it when they bought the German company
This is an opportunity for real change in AZ. It's more than just new buildings. If AZ get this right, they could really build an innovative culture here.
Pascal, this is a message for you: don't just transplant the same structure that you have now to a new location. Look at really innovative businesses, see what they do well and grab the best bits. Get rid of the antiquated performance management system, and the dreadful management structure.
Go on! I dare you!
Get rid of middle managers. It is insane to have so many middle managers that they almost out number the people actually doing the work in the lab. Those managers slow things up and prevent innovation to cover their own butts. Without a rethink on how many people are in do nothing management positions vs wet lab positions, this company is not going to recover.
AZ World HQ and R&D to be at Cambridge UK. Big announcement on BBC Look East News last night. 1500 jobs to be created.
"I don't know the details of the Humera deal but I believe the product was discovered using CAT phage technology. Any discoveries from this program Abbott had first option on but had to pay CAT a royalty for. Obviously for Humera this was a lot a money but nowhere near as much if CAT could have done some shared development program"
So CAT used phage-display, which has been around a lot longer than CAT, to find an anti-TNF which was Abbott's idea? doesn't that make CAT just a CRO?
Prediction. As revenues fall, the closure plans will remain unchanged but the new lab plans will gradually shrink. Who really knows what will be in Cambridge in 2016. All the best to everyone involved.
Unfortunately Cambridge UK has about the same level of innovation as any other third tier biotech cluster. Sad to see the UK "save jobs" while sinking the ship. What a waste of money and time.
The CAT site is nonproductive - lots of people talking about Humira but nothing to show from the last 10-15 years. AstraZeneca has not launched a single product from CAT technology since the acquisition. Zero, Nada, Zilch, Nothing.
A sad day indeed. I was at AZ and saw a great pipeline "pissed up the wall" by hubris. arrogance and incompetent leaders who were deskilled ( some did not have the skills in the first place). A bunch of tossers like Les Hughes, Brent Vose, Alan Barge underpinned by even deeper mediocrities like Andrew hughes. Phillip Hedge etc ....
Next step bring in leaders from the most incompentent R+D organisation in the industry: Pfizer...
Result failure, misery and sadness for large number of people: yes real people..
The party is over and if you think MP, BJ and BM will save the day... dream on.....
Take your money and run and whilst at it spit at Dame Nancy Rothwell who the board and took the money
A sad day indeed.
Boston: one of, if not the top, biotech/innovation/VC hubs in the world. Some of the top universities/institutes in the world (Harvard, MIT, Broad, not to mention half a dozen other major research schools), some of the top cancer centers/hospitals in the world (DFCI, MGH). Waltham site has empty labs and room to grow. So why blow millions to build in Cambridge and ignore the obvious choice?
I don't know the details of the Humera deal but I believe the product was discovered using CAT phage technology. Any discoveries from this program Abbott had first option on but had to pay CAT a royalty for. Obviously for Humera this was a lot a money but nowhere near as much if CAT could have done some shared development program
Re Dads Army - we're doomed or don't panic?
" Cambridge bipharms arm (pre Medi) years ago which had a real blockbuster discovery (Humeria), unfortunately then licensed out to Abbott."
Did CAT have any IP on Humera or was it contract research?
"Totally agree. It is not about saving money & its not about managing the loss of income from the patent cliff, this is about exorcising AZ of the people, practices and culture of AP. Its about building a brand new R&D organisation from the beginning - new people, new practices, new culture It is about the future, not the past or the present.
The loss of income will be dealt with by acquisition of assets, whether they be single molecules or companies, only a few really know."
AZ currently has about $8bn in cash and $10bn in debt so not a lot to play with to replace revenue of around $10bn/yr. Last year AZ made $6bn profit but revenue is going to drop by around $8 - $10bn by 2016, so will be running a loss of $2 - $4bn/yr. It's all very well to build for the future but if you have a net debt plus you're going to be making a loss of $2-$4bn/yr then you don't have a very long future to be thinking about. The numbers don't add up: there's going to have to be some heavy cost-cutting soon.
Re Medi delivery
A lot of noise/promises but not much else so far. Medi pipeline looks good but then all pipelines look good until they actually have to deliver real products (cf AZ small molecules) and then they do not look so good any more.
AZ needed a biopharm arm but basically massively overpaid for Medi. AZ would have been better off making a real effort to rapidly build up their Cambridge bipharms arm (pre Medi) years ago which had a real blockbuster discovery (Humeria), unfortunately then licensed out to Abbott.
Out of interest what has medi delivered?
'Apparently this isn't a cost cutting measure. It's an investment for the future.''
Totally agree. It is not about saving money & its not about managing the loss of income from the patent cliff, this is about exorcising AZ of the people, practices and culture of AP. Its about building a brand new R&D organisation from the beginning - new people, new practices, new culture It is about the future, not the past or the present.
The loss of income will be dealt with by acquisition of assets, whether they be single molecules or companies, only a few really know.
Unless you are director/vp level (or have a large inheritance) you can forget about actually living in or around Cambridge as its so expensive. The problem is there is then not much else around for about 20 miles in any direction. Lots of attractive country properties but not everyone wants to live miles from the nearest shops/schools/facilities & no footpaths. Ok if you want isolation though.
Yes, when you go away from Cambridge the house prices go down but there is a very good reason for this !
I suspect mene will want to recruit mainly new people anyway so maybe moving to the Cambridge area is all a bit academic for AP folks.
In my South Cambs village, we have shops, primary school, secondary school, pubs and short drive/cycle to the Science Park.....+ 5 miles to Tesco..... I moved here in 1998 after doing my BSc, MSc and PhD in Manchester and have never considered moving back to the NW.....oh, I forgot that the weather is better down here and the houses are a load cheaper than the villages surrounding Alderley Edge!!
There is a saying from dads army that seems appropriate.
How can this fill an empty pipeline. For the past 3 or 4 years all effort had been in restructuring and cost cutting. This will just prolong this for another 3 + years. No one is going to be doing drug discovery they will be re applying for their job, looking for another job, moving the family, moaning. R and I lost many of its best people just when it could ill afford to.
Anything new will be too late
Apparently this isn't a cost cutting measure. It's an investment for the future. The logic behind it seems sound,it's a shame it's far far too late. AZ will set up a hub in Cambridge and thrash away at small and large molecules using target based drug discovery till they run out of cash. Then this cycle of slash and burn will start again in 2020. Sooner or later it will not have the resources to do anything other than make the SET very rich. Then its lights out
this can't possibly be the end of it. The press release says the changes will cost $1.4bn and achieve a saving of $190m/yr by 2016 which means it's going to be over 10yrs before these changes even reach a break-even point!
So does absolutely nothing to compensate for the loss of Nexium and Crestor - where are the cuts to compensate for that going to come from?
Anyone know what is happening with the other parts of the business ie fianance, ops, hr etc??
From major pharma to biotech startup in one easy step - amazing the shareholders fell for this.
Here's a tiny url link to the local story...
What the local rag has to say about all this in Cambridge...
Submitted by Anonymous on Mon, 18/03/2013 - 20:17.
"Decent 3 bedroom houses start at 400-450k in Cambridge"
... and houses in Alderley Edge cost how much?? You don't have to live in Cambridge, houses within commutable distance are much more affordable Android likely to appreciate in value much more than 'Up North'
I'm just passing on facts to let people know. If the numbers add up for you, that's great.
It will be akin to the Pharm Dev 'apply for a role, then be offered the carrot' fiasco. So, as has been said, assume nothing.
I understand about Cambridge being biotech vibrant etc but it leaves something to be desired as a major international pharmaceutical research centre. The nearest airport is stanstead, so great if you want Ryanair to magaluff but not so good for business travel where you have a long track around the m25 to heathrow.
Cambridge is a great place but very expensive & little available housing. Around Cambridge is a lot of lovely countryside but not a lot else. The villages are pretty but small & you will be lucky if they have a shop & a primary school. The secondary schools are in Cambridge so lots of school runs.
You have to go a long trek away from cambridge to find a town with any substance to it. It's not like AP where you have a number of major towns with loads of facilities available within easy commuting distance (wilmslow, Cheadle, Macclesfield, congleton, Knutsford, etc, etc).
Irrespective of the need for a job &wanting to stay with az, I can't see many people wanting to swap the south Manchester cosmopolitan lifestyle for the quiet desolation of the Cambridgeshire countryside. Maybe ps/mp think this will help focus people on research instead of having a balanced lifestyle ?
Ps, I don't work at ap
'Exploring all options to ensure that Alderley Park has a successful future'
Yeah, right. Heard that one before.
So what did Mene say? If he outlined the relo package, did he mention whether this would be offered to all?
Relocation packages as follows (according to Mene):
1 years salary
Buying your current house off you at market value
Very sweet package!
Yes it looks sweet - if you are one of the very few that will be offered the chance to relocate. The point about building a new facility in Cambridge is to start to build a totally new R&D organisation, which must mean new people also. So, most positions will be filled with people new to AZ, not with people already in post at Alderley.
Functions are to be relocated, do not take this as a guarantee present incumbents will be offered the chance to relocate. The expense of closing AP and building a brand new facility at a cost of $500 MUSD is because Soirot wants to clear AZ of the correctly named, Toxic Alderley culture. Assuming this is true, then why would present incumbents be relocated ?. Only certain key staff will be given the chance to relocate, the remainder of the positions will be filled with new recruits.
"Decent 3 bedroom houses start at 400-450k in Cambridge"
... and houses in Alderley Edge cost how much?? You don't have to live in Cambridge, houses within commutable distance are much more affordable and likely to appreciate in value much more than 'Up North'
Relo is taxed at full rate
Redundo is not - first £30k tax-free. No brainer.
It'll be taxed as income. You can only avoid some tax liability if made redundant unless AZ decide to gross up to pay your tax; which is unlikely as they didn't do this last time they bribed folk to stay. Pretty decent package though, considering if you have to relocate of your own volition you'll get nowhere near this if you join a new company. Most places will only offer the HMRC max of about £8k tax free and certainly won't buy your house these days.
Decent 3 bedroom houses start at 400-450k in Cambridge at today's prices. The quality of houses in Cambridge is surprisingly poor too. Rents for 3 bed houses are around £1500 a month.
1 years base salary, don't know about tax situation.
"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."
Well, I wans't far of with this predicition!
TV news tonight were saying that AP was set to close completely, but a local MP (Chancellor George Osbourne) intervened. Now there are 700 Operations and IS jobs at AP, but no one their for them to support. Hardly a sustainale solution.
1 yr's pay after tax? - will be nowhere near enough to make up for the HUGE housing price differential and greater living costs.
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