European Shares Decline Due to Slump in Pharmaceutical Sector

Due to FDA’s decision to further delay the review of AstraZeneca’s heart drug Brilinta, the Company witnessed a slide in its share prices making European shares declined by midday on Wednesday. But, the loss was compensated by the advancement in the stock prices of car makers.

The pan-European FTSEurofirst 300 index of chief shares at 1046 GMT dropped 0.3% to 1,084.14 points. In September, it increased 5.6% and the analysts showed positivity by saying that the index is still giving some of the profits.


AstraZeneca wins Crestor patent case; shares jump

Shares in British drug company AstraZeneca jumped more than 10 per cent to £31.77 after a US court ruled that a patent on cholesterol drug Crestor was valid.

The Crestor was challenged by nine generic drug-makers in 2007. But, the US District Court in Delaware favored AstraZeneca by describing the patent as “valid & enforceable”.

The ruling has provided AstraZeneca with monopoly over producing and selling Crestor as cheaper, generic versions of the drug now can not enter the US market until 2016.

According to Citi estimates, Crestor accounts for 20 per cent of group profits.


Setback for Drug Manufacturer AstraZeneca

In a setback to Anglo-Swedish drug manufacturer AstraZeneca's plans to extend the life of its blockbuster acid reflux drug Nexium through new uses, U. S. regulators on Tuesday delayed the approval of the drug that was to be combined with aspirin.

Netting an annual sale of $5 billion, Nexium is likely to lose patent protection in key markets. And to counter its probable losses due to the non-sale of the drug, AstraZeneca is developing novel formulations to extend its franchise.


AstraZeneca Resolves Issue with U.K. tax Authorities

After settling a 15-year dispute with U. K. tax authorities, drug manufacturer AstraZeneca PLC raised its 2010 earnings.

AstraZeneca will pay £505 million ($781.7 million) in two installments to resolve the so-called "transfer pricing" claims dating back to 1996. Transfer pricing refers to the pricing of assets, services and funds transferred within an organization.

It plans to release part of its revenue to deal with the U. K. settlement.


AstraZeneca to hack further 8,000 jobs

After slashing as many as 12,600 jobs since 2007, Anglo-Swedish drug-maker AstraZeneca now has plans to axe further 8,000 jobs worldwide by 2014 as a part of its cost-cutting drive.

AstraZeneca also warned that it might close some of R&D sites or facilities as part of its reorganization that aims to make savings of $1.8 billion over the approaching four years.

The drug-maker announced its plans to make further job cuts despite increase in profits.



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