AstraZeneca PLC to Carve Out Antibiotic R&D Into New $40 Million Firm; Move Will Impact 95 Employees

February 27, 2015
By Mark Terry, BioSpace.com Breaking News Staff

U.K.-based AstraZeneca PLC announced today that it will be breaking out its antibiotic research and development business into a standalone company. The company plans to drop $40 million into the new venture, which will affect about 95 people at its facility in Waltham, Mass.

The new company will focus on research and development of AstraZeneca’s early-stage antibiotic pipeline. This will include AZD0914, a gyrase inhibitor that is currently in Phase II clinical trials for gonorrhea. The new venture will be led by staff from AstraZeneca’s Innovative Medicines Unit.

“As already communicated to our employees,” AstraZeneca wrote in a statement, “this new way of conducting small molecule antibiotic research and early-stage development will impact approximately 95 employees based in Waltham, Mass. It is anticipated that some of the researchers impacted by the changes will take up roles in the new company, or in other parts of AstraZeneca. We are fully committed to supporting our people through the transition.”

The last year has been tumultuous for AstraZeneca. It is mired in a landmark class action lawsuit accusing the company of colluding with India-based Ranbaxy Laboratories. In May 2014 Pfizer Inc. bid $119 billion for the company, but the deal fell through. In January 2015 Robert Iannone took over the immuno-oncology drug development operations, which followed several high-level departures, including Rachel Humphrey, former senior vice president and head of immuno-oncology. Peter Emtage, part of AstraZeneca’s MedImmune unit, left around the same time to take a senior position at West Palm Beach, Fla.-based Intrexon Corporation .

AstraZeneca’s CEO Pascal Soriot had indicated in 2014 that he was looking to partner or sell the anti-infective business, claiming it was not thought of as a core area for the company. This is fairly true of most of the industry, with anti-infective profits considered lower than other areas, such as oncology. However, because of new demand for antibiotics to treat drug-resistant bacteria and viruses, many companies are renewing their interest in antibiotics.

The new company will not effect other anti-infectives AstraZeneca is currently marketing, including Merrem, Zinforo, Fluenz/Flumist and Synagis. Nor will it affect a new antibiotic approved just this week that AstraZeneca co-developed with Actavis plc . That drug is called Avycaz.

Avycaz is a combination of ceftazidime-avibactam, and is approved for the treatment of adults with complicated intra-abdominal or urinary tract infections, as well as kidney infections. It has shown effectiveness in fighting antibiotic resistant bacteria.

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