AstraZeneca expands in China, cuts back in USA

It was a busy couple of days for Anglo-Swedish drug major AstraZeneca (LSE: AZN), with the company yesterday announcing a new set of cutbacks in the number of US employees, with a near quarter reduction in its sales staff, and this morning revealing it is to buy a generic drugmaker in China, so expanding its presence in emerging markets and adding to the already $500 million it has invested in China since setting up there in 1993.

AstraZeneca has entered into an agreement to acquire Guangdong BeiKang Pharmaceutical, a privately-owned generics manufacturing company, based in Conghua City, Guangdong province. The deal will give AstraZeneca access to a portfolio of injectable medicines used to treat infections which AstraZeneca will make available to patients in China. Financial terms were not disclosed.

On completion, AstraZeneca will be responsible for the manufacture and commercialization of these medicines. Effectiveness of the agreement is contingent on the approval of certain regulatory authorities, including the approval of the Ministry of Commerce in China. The transaction is expected to close in the first quarter of 2012.