AstraZeneca to outsource all manufacturing within next decade: report
AstraZeneca said it plans to outsource all of its drug manufacturing within the next 10 years, The Times of London reports.
“Manufacturing for AstraZeneca is not a core activity,” said David Smith, AstraZeneca's EVP of operations, in a report on the newspaper's Web site.
“AstraZeneca is about innovation and brand building … There are lots of people and organizations that can manufacture better than we can,” Smith added.
Smith is reportedly leading a restructuring at the company aimed at cutting costs and improving profitability.
He told The Times that the company's priority would be to outsource all of its manufacturing of active pharmaceutical ingredients.
This year to date, the Anglo-Swedish drugmaker has announced plans to phase out 7,600 staff, nearly 12% of its workforce, to help save the company an estimated $900 million by 2010.