Are we safe?

....based on the 2015 results in the US, what are some opinions on "head count" for this year. I may be wrong but it leads me to think there aren't any planned reductions in the near future,for any division in the US. It seems that every so often,someone posts something about layoffs, trying to invoke fear and general pessimism. Thoughts?

 

Reality is that Crestor is going generic. Traditionally AZ has announced layoffs in the Spring/Fall. They will push us to the very end to chase every single script. Time will tell.

 

Agreed..what are the folks promoting Crestor going to have after it goes generic?

 

I've been with several companies that lost a blockbuster and layoffs occured shortly afterwards. Hard to say what will happen. All you can do is read between the lines. I know there are some strict guidelines in place for backfilling positions right now. I'd be more concerned if i was in PC losing Crestor in May.

 

i have been with a company that lost a blockbuster drug bigger than Crestor and all we did was go buy more companies that had drugs now. I am not saying it's not going to happen but it's not the end of the world like others will say. We don't know what they have lined up. Hell they might buy Amgen and there you go!!

 

Oh sure, like AZ has the assets to buy Amgen. Look, they raised the price of Crestor by 15% which came out in the Congressional hearings today. They also asked how much Pharma is spending to promote drugs that are going generic in a few months. Another bright shining moment for AZ when it was also made clear that they are trying to gouge the public right before their drug goes generic. Now when our revenues and profits drop significantly once Crestor, XR, and Symbicort go generic, they will be forced to cut costs which translates to massive layoffs.

 

The part that says "materially reduce" sales and general administration caught my eye in this article by the WSJ.


LONDON-- AstraZeneca PLC warned earnings would fall this year as it continues to plow investment into research and development and expects a sharp drop in sales for one of its blockbuster drugs, surprising investors and sending shares down more than 4% in early trading here.

London-based Astra said it expected "core" earnings per share--which strip out exceptional items--to decline in the low to mid-single digits range in 2016, at constant currencies. That surprised investors, who had expected the company would keep earnings guidance flat.

Astra also said that it anticipates sales for Crestor, its cholesterol drug, to fall this year as its patent expires.

Despite those headwinds, Astra said it would continue to fund its costly research and development at 2015 levels throughout the coming year. It said, however, it would "materially reduce" sales and general administrative expenses to help rein in costs.

In early trading in London, Astra shares were down 185 pence, or 4.2%, at 4227 pence.

The fresh guidance also included the dilutive effect of its $2.7 billion acquisition of ZS Pharma and $4 billion deal to buy a controlling stake in Acerta Pharma, both announced late last year.

The decision to hold research spending steady, rather than reducing it, shows the pressure AstraZeneca is under as it furiously pushes a growing pipeline of upcoming drugs, to replace the revenue lost from older drugs, some of which, like Crestor, are facing the end of their patent protection.

That pipeline was a key plank in Chief Executive Pascal Soriot's defense against an unsolicited, and ultimately failed, takeover bid by Pfizer Inc. in 2014. At the time, Mr. Soriot promised investors Astra was more valuable as a stand-alone company because of the growth these new drugs promised.

The profit warning came as Astra posted net income of $808 million in the quarter ending Dec. 31, compared with a loss of $321 million in the year-earlier period. It reported revenue of $6.4 billion, a 5% decrease from $6.7 billion a year ago. Stripping out the effect of the strong dollar, sales increased 2%.

Core net profit, a measure which strips out certain one-time items, rose 26% to $1.2 billion. Analysts expected revenue of $6.3 billion and core net profit of $1.2 billion.

The company's financial results were boosted by proceeds from a series of licensing deals that involve AstraZeneca relinquishing the rights to develop and commercialize certain drugs in its pipeline in return for an upfront payment, along with "milestone" payments garnered along the way if the drug meets certain financial targets.

In the fourth quarter, AstraZeneca received $192 million from such deals. Mr. Soriot has said this so-called externalization strategy allows Astra to focus on the diseases where it has most expertise while creating value from those drugs that sit outside these areas.

Product sales, at $6.2 billion, were flat at constant currencies compared with a year earlier, as the growth of new products helped offset the revenue decline from Astra's older drugs, which are facing cheaper competition following the loss of their patent protection.

AstraZeneca said its so-called growth platforms--the products it is betting on for future expansion--generated $3.6 billion in sales in the fourth quarter of the year, up 11% from a year earlier at constant currencies.

The company said it would pay a second interim dividend of $1.90 per share, bringing the dividend for the full year to $2.80, and reiterated its commitment to a progressive dividend policy.

Write to Denise Roland at Denise.Roland@wsj.com

More from MarketWatch

 

just an opinion but those losing Crestor could go either have the total respiratory portfolio or the total diabetes folio that would include injectable and oral.

 

The part that states "materially reduce" sales and general administration expenses caught my eye in this WSJ article.

There aren't many ways to materially reduce sales.....


LONDON-- AstraZeneca PLC warned earnings would fall this year as it continues to plow investment into research and development and expects a sharp drop in sales for one of its blockbuster drugs, surprising investors and sending shares down more than 4% in early trading here.

London-based Astra said it expected "core" earnings per share--which strip out exceptional items--to decline in the low to mid-single digits range in 2016, at constant currencies. That surprised investors, who had expected the company would keep earnings guidance flat.

Astra also said that it anticipates sales for Crestor, its cholesterol drug, to fall this year as its patent expires.

Despite those headwinds, Astra said it would continue to fund its costly research and development at 2015 levels throughout the coming year. It said, however, it would "materially reduce" sales and general administrative expenses to help rein in costs.

In early trading in London, Astra shares were down 185 pence, or 4.2%, at 4227 pence.

The fresh guidance also included the dilutive effect of its $2.7 billion acquisition of ZS Pharma and $4 billion deal to buy a controlling stake in Acerta Pharma, both announced late last year.

The decision to hold research spending steady, rather than reducing it, shows the pressure AstraZeneca is under as it furiously pushes a growing pipeline of upcoming drugs, to replace the revenue lost from older drugs, some of which, like Crestor, are facing the end of their patent protection.

That pipeline was a key plank in Chief Executive Pascal Soriot's defense against an unsolicited, and ultimately failed, takeover bid by Pfizer Inc. in 2014. At the time, Mr. Soriot promised investors Astra was more valuable as a stand-alone company because of the growth these new drugs promised.

The profit warning came as Astra posted net income of $808 million in the quarter ending Dec. 31, compared with a loss of $321 million in the year-earlier period. It reported revenue of $6.4 billion, a 5% decrease from $6.7 billion a year ago. Stripping out the effect of the strong dollar, sales increased 2%.

Core net profit, a measure which strips out certain one-time items, rose 26% to $1.2 billion. Analysts expected revenue of $6.3 billion and core net profit of $1.2 billion.

The company's financial results were boosted by proceeds from a series of licensing deals that involve AstraZeneca relinquishing the rights to develop and commercialize certain drugs in its pipeline in return for an upfront payment, along with "milestone" payments garnered along the way if the drug meets certain financial targets.

In the fourth quarter, AstraZeneca received $192 million from such deals. Mr. Soriot has said this so-called externalization strategy allows Astra to focus on the diseases where it has most expertise while creating value from those drugs that sit outside these areas.

Product sales, at $6.2 billion, were flat at constant currencies compared with a year earlier, as the growth of new products helped offset the revenue decline from Astra's older drugs, which are facing cheaper competition following the loss of their patent protection.

AstraZeneca said its so-called growth platforms--the products it is betting on for future expansion--generated $3.6 billion in sales in the fourth quarter of the year, up 11% from a year earlier at constant currencies.

The company said it would pay a second interim dividend of $1.90 per share, bringing the dividend for the full year to $2.80, and reiterated its commitment to a progressive dividend policy.

Write to Denise Roland at Denise.Roland@wsj.com

More from MarketWatch

 

Bruhahahahaaa.... Are you that fucking stupid? When they say they will be forced to reduce costs by reducing sales and administration, that means layoffs and big ones. But they won't tell you that until the last second. They will mislead, lie and deceive to keep us working until we aren't.

 

Actually, that person doesn't sound stupid at all. Probably meant that there would be migration to two specialty sales forces, respiratory having all of respiratory prods. in their bag, since (we) have bought the rights to several new resp. meds in past year. AND a diabetes specialty that would incorporate ALL orals/injectable. That's in line with what was mentioned on a teleconference, eventually AZ going to 50% specialty roles. So maybe you are the dumb ass.Yeah,sounds correct to me.

 

here is what's going down as we type these threads! First PC reps are back filling Diabetes position and if your a diabetes rep and your numbers are bad you will be replaced by a PC rep 2nd quarter. Your welcome!

 

our biggest block buster drug going generic soon... pharma playbook page 1. Raise price
page. 2 raise price some more 3. keep sales force pedal to metal on sales (tell'em whatever they want to hear) 4. Sue the generic guys 5. Sue generic guys again

Every week this drug stays branded equals about $100,000,000.00 a WEEK! in revenue (that buys a lot of lawyers) so sell, sell, sell.

The day it goes generic the company will pull the ripcord on this product..party over, turn off the lights..

As for the field rep..?

 

"Oh sure, like AZ has the assets to buy Amgen. Look, they raised the price of Crestor by 15% which came out in the Congressional hearings today. They also asked how much Pharma is spending to promote drugs that are going generic in a few months. Another bright shining moment for AZ when it was also made clear that they are trying to gouge the public right before their drug goes generic."

Sorry to ruin your day Bernie, but a company is, and should remain free to charge whatever they want for their products and services. A company does not owe you or anyone else a price you deem fit. Loser, go back and protest with Occupy Wallstreet.

 

It's "You're" welcome, you idiot. Learn proper grammar and/or spelling.

 

Okay thanks , youuuuu added a lot to this thread !!!!! Now go fuck off some place else !

 

Within reason of course Martin Shkreli

 

Excuse me but bringing up the AZ raised prices right before Crestor goes generic does not imply she is a Bernie supporter, a loser or an Occupy Wall Street fan. It implies that she thinks AZ made a bad move - perhaps resulting in bad PR. You are such a ignorant idiot to think everything is black and white according to if you vote R or D. You need to get a flippin clue dolt.

 

Who gives a rat's ass about "bad PR"! We are in business to make a profit, and keep us in a job! I do my share, 2 hours a day, 5 days a week! Pascal doesn't care about a dumbass Congressional committee! He is taking us to $45 billion in sales by 2023, so we HAVE to gouge the public on drug prices. We have no choice!