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re : AZN narrows focus

AstraZeneca CEO says to cut disease focus -FT

LONDON, Dec 16 (Reuters) - AstraZeneca Plc (AZN.L: Quote, Profile , Research) will cut the number of diseases for which it develops new drugs and concentrate on acquisitions and licensing deals in those areas, its chief executive said in an interview published on Saturday.

David Brennan told the Financial Times the company would withdraw from hypertension, functional gastro-intestinal disorders, inflammatory bowel diseases, Parkinson's disease, multiple sclerosis, addiction, insomnia and stroke.

Its future focus would be to build on the group's strengths in diabetes and obesity, infection, inhalation projects and analgesia, as well as cancer.

"Our primary focus is in areas where we have existing therapies ... (and) are most likely to get a hit. Right now we are much more focused on areas where we are strong, rather than in diversity," Brennan said.


His remarks suggest that acquiring Shire Plc (SHP.L: Quote, Profile , Research) -- Britain's third largest drugmaker -- is not on the cards, since it specialises in attention deficit disorder, gastro-intestinal and renal diseases and human genetic therapies.

Shire was reported to be in AstraZeneca's sights last month, although several industry analysts said at the time they were sceptical of such a deal.

AstraZeneca has suffered a series of late-stage product setbacks, which have shaken confidence in its ability to bring new drugs to market.

Its latest new drug hope, stroke treatment NXY-059, failed in October, following earlier setbacks for anticoagulant Exanta, lung cancer pill Iressa and Galida for diabetes.

Brennan said any further cost-cutting to maintain operating margins at 30 percent would not come from investment in research and development, which he said he would like to increase to 18-20 per cent of sales by 2010.


http://tinyurl.com/ym764s