BioCentury
ARTICLE | Company News

AZ planning job cuts in Germany

December 6, 2012 2:14 AM UTC

AstraZeneca plc (LSE:AZN; NYSE:AZN) said it plans to reduce headcount by about 400 (39%) to about 625 in Germany, citing the country's mandatory 16% drug rebates and pricing freeze, changes in the pharma's product portfolio and delays in R&D. The planned cuts would come primarily from the pharma's sales force and internal support staff. An AstraZeneca spokesperson said the cuts are not due to drug pricing law AMNOG. In May, AstraZeneca negotiated a EUR 2 price per day in Germany for cardiovascular drug Brilique ticagrelor, lower than the EUR 2.48 the company had requested but a price that the pharma said was "fair" and with which it was "satisfied." The pharma did not provide additional details.

Germany's increase in mandatory rebates to 16% from 6% and drug pricing freeze were enacted in 2010 to counteract the financial difficulties of the country's public health insurance funds (GKV). AstraZeneca said it estimates the measures will cost the pharma about EUR 300 million ($390.8 million) from August 2010 through the end of 2013, when the measures are set to expire. The pharma did not disclose how much it expects to save with the planned cuts. ...