Updated on 2 March 2015
The move will impact approximately 95 employees based in Waltham, Massachusetts
Singapore: According to a Reuters report, AstraZeneca announced its plans to carve out its early stage antibiotic research by creating a stand-alone subsidiary company, in order to focus on its core therapy areas.
The drugmakers' chief executive officer, Mr Pascal Sariot said last year that he was looking to partner or sell its anti-infective business, which the company no longer viewed as one of the core focus areas.
The company said in statement that it will invest nearly $40 million in the new company which will include early-stage products such as a drug in phase II for gonorrhea. The move will impact approximately 95 employees based in Waltham, Massachusetts.
Due to its low profits, many drugmakers are shifting their focus from antibiotics to more profitable drugs like cancer drugs. AstraZeneca mentioned on its website that the company clearly plans to focus only on three therapeutic areas- oncology; cardiovascular and metabolic diseases; and respiratory and inflammation.