AstraZeneca Plc (NYSE:AZN) Cuts Jobs, Signs New Collaboration With Eli Lilly and Co (NYSE:LLY)

AstraZeneca Plc (NYSE:AZN) Cuts Jobs, Signs New Collaboration With Eli Lilly and Co (NYSE:LLY)

AstraZeneca Plc (NYSE:AZN) has recently unveiled how it plans to transform its US Commercial segment as part of its broader growth strategy.

“By diligently prioritizing, we will continue to successfully launch and commercialize new medicines, meet the needs of our customers and patients, and ultimately help AstraZeneca return to growth,” explained the company in its press release.

Strengthening the US Business

Due to low revenue anticipation in the year ahead, AstraZeneca had been forced to make tough decisions to remain consistent with its growth prospects.

As a result, the company will significantly cut expenses further. Particularly, AstraZeneca will cut about 700 jobs and discretionary spending. The layoffs will ripple throughout the US. A number of field-based sales and field-based non-sales employees will also be affected.

Overall, this will play a major role in the company’s proposed reduction in Selling, General, and Administrative (SG&A) expenses in the fiscal year (FY) 2016 and FY 2017, which had been revealed earlier this year.

Amid the difficulties that AstraZeneca is currently facing, it has reiterated its commitment to serving the best interests of all its employees in the best way possible.

MEDI1814 Clinical Development Program

On Friday, AstraZeneca and Eli Lilly and Co (NYSE:LLY) have entered into a global agreement to collaboratively develop MEDI1814, an antibody selective for amyloid-beta 42 (Aβ42) that is currently being evaluated for the treatment of Alzheimer’s disease (AD) under Phase 1 clinical trials. The agreement builds on the companies’ existing agreement to develop AZD3293, a BACE inhibitor being evaluated under two Phase 3 clinical trials.

Both AstraZeneca and Eli Lilly are excited to work on yet another valuable collaboration that can result in a substantial breakthrough.

Generally, MEDI1814 can potentially lead to significant AD progression decline. Consequently, the companies believe that it can provide a unique treatment option for AD, significantly improving the lives of AD patients and the patient care they get.

This new partnership on a clinical development program will also play a vital role in the growth strategy of AstraZeneca as it seeks to build up a competitive product portfolio and avert further losses.

AstraZeneca has closed at $26.27 on Thursday while Eli Lilly has closed at $67.19.