New CEO to announce outcome of new restructuring plan in Jan Feb, what's he going to say?
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.
"AZ has a small unit at the Karolinska Institute"
Any news where in Cambridge the new site will be? Addenbrookes (Cambridge Biomedical Campus) or near the new railway station by the A14? Wouldn't be surprised if the relocation packages were quite frugal. A lot of people to move and job options very limited in the NW.
Wow - this is a brave (or stupid) move by AZ - didn't see it working out like this. However, for those who are selected for the new empire in Cambridge it may not be so bad. One of the (many) reasons I turned down the opportunity to move to AP when they closed down Charnwood is that I didn't want to get stuck there if it all want belly up with limited chances of employment in that part of the country (as has what's just happened and happened to those in CVGI laid off last year). Assuming AZ offer a decent relocation package, this essentially means you've got a job for the next few years while the new site is built, AZ will then pay to move you to the Cambridge area (which is probably the best part of the country to be in if you want to stay in the pharma/biotech. industry) and if things don't work out you'll be in a much better location to find another job without having to fund the move yourself.
AZ has a small unit at the Karolinska Institute.
You really think they will transfer 1600 jobs with all that talent in Cambridge sitting in 'vibrant' biotechs - do you really think there research focus will be what it is now? Wake up.
All R&D functions from AP to be relocated to Cambridge. That includes GSA and DMPK.
Personally i'm excited by the prospect of a lump sum and a jolly in cambridge for a year or two
Commiserations to all those at AP; at least to some - other s who thought it would never happen need to understand that corporate loyalty counts for nothing.
Really sorry for those who moved from Charnwood a couple of years back. As to Sweden - well as you can see productivity is not a focus for AZ.
What about global safety assessment? Last year when Södertälje was removed, GSA was supposed to be run fr.o.m. AP?
Lund was in Medicon Valley. Ideally placed to be in the thick of emerging biotech. Charnwood is near BioCity. Södertälje - Karolinska Institutet. The wrong sites were abandoned by the last SET.
"200 FTEs affected in Mölndal"
Any more details? CVGI? Other functions?
Why abandon state of art facilities and then recreate them at a cost of 500 Million? Am I missing something. I think Soriot thinks the AP culture and mind Set is so toxic he thinks the only way forward is a complete fresh start on a new site. I do not expect many senior AP managers to be moved to Cambridge
Should have kept shares good dividend and City will like this move once bolt on additions start to be made. AZ Is Not going bust
" leaving useless Molndal CVGI untouched is strange. Why not re-build it all (R&I is still rebuilding there)?"
That is making an assumption that cvgi is untouched. We heard that ria will be a focus. We have not heard the readout from the functions. There could be some shuffling of the deck or reallocation of resources. if it were my money, I'd spend it where I wanted to improve, cutting resources isn't going to make cvgi stronger.
Yes - but everyone is cutting or freezing jobs so unless you are really lucky, have senior management credentials or are in-the-know its a catch22. AZ have offered so voluntary redundance so many time in the last few years it'll have to be mostly 'compulsory' voluntary losses amongst those who can't move again. For many relocation to Cambridge will be a good financial move to put them in the right place to hop over to other biotech companies.
sold my shares - shall i move my pension?
Wonder if the relocation package will be as sweet as last time ?
AP scientists - don't move for AZ - move for the job you want not one they want to give you. There's life outside AZ they don't own you.
What happening to New Opportunities iMed?
"No cuts at all in Mölndal? Seriuosly?"
Actually 200 FTEs affected in Molndal.
He's looked in the cookie jar and there is little left to pay the rent.
This one makes interesting reading:
It appears that Pascal is stripping AZ of its unneccessary trimmings, including the fancy Paddington offices... smart move?!
....and AP is sooooooo English"
Quote "R+D lab knows it's a place where English is a second language, they flood the place with people from countries where lying and deception is the norm."
Have you ever been to AP? Lying and deception is the norm there - Backstabbers galore!
Although I sympathize with all those who now lose their jobs, I think this is quite a clever move, albeit five years too late. Getting rid of all the built-in rigidity @ AP is good, but leaving useless Molndal CVGI untouched is strange. Why not re-build it all (R&I is still rebuilding there)?
Also, I can't see the numbers adding up, there will be fall in revenue in the order of $$$ Billions and this will save 190 Millions/year? Anyone figured out how this will help to reduce all the $$$ in costs?
Oh, come on! they hire their PhD's through temp agencies and from custom synthesis sweat shops at the Waltham site. How can you take them seriously? How can you take any of these big pharma's seriously? They cry the blues about their pipelines being empty yet they view R+D as some kind of a necessary evil. Anyone that's ever seen the inside of any big pharma R+D lab knows it's a place where English is a second language, they flood the place with people from countries where lying and deception is the norm.
Tell it to someone that doesn't know any better.
1600 people are not being relocated - 1600 ROLES are being relocated. Not the same. Essentially, this means almost all R&D staff currently employed at AP will lose their jobs - either because they cannot relocate to Cambridge or they will not wanted in the new organisation. Sad.
'Bodge-it and Scarper'...
Please God, no, not a new name... you'll start a landslide of comments about appropriate new names...
On a positive note, a new name might be a good idea, as long as it isn't made up of two (or more) existing company names...
Closing Charnwood was part of the old management's strategy and that has now changed. Under the Brennan regime R&I would likely have gone this time around. The new company begins to look like a mid-range player and is becoming so different to the tarnished image of AZ that a new name is a good idea.
1) Close Charnwood (where expertise in respiratory existed) - (where hundreds of $M were invested prior to closure)
2) Close AP RD and move to a facility to be built in Cambridge.
1) loss of $$$$$$$$$$
2) loss of talents
3) loss of engagement
3) loss of time
For how long has the AZ website tagged the company as 'a global biopharmaceutical company'? Elsewhere biopharma is edging back to sm & rdd. Leading from the back again AZ.
How do ypou move 1600 people to Cambridge without seious expansion onto the car park at Medi or buiy/leasing expensive extra facilities roughly the size they'll be vacating at AP? Sounds like someone wants to be properly in the UK biohub regardless of cost or logic!
Its expensive leaving real estate unused at AP
What about Bangalore?
The three strategic sites will be supported by other existing AstraZeneca facilities around the world, including Boston, Massachusetts, US which will continue to be a centre for research and development, with a primary focus on small molecules
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