Pharmaceutical major AstraZeneca has will outsource production of its bestselling medicines to China low-cost manufacturers.
In a bid to slash $900 million by 2010 the group has started purchasing Lactam, one of the important chemical ingredients used to make Seroquel, AstraZeneca's top selling schizophrenia drug, from contract manufacturers in China.
AstraZeneca's top selling drug is Nexium, sold $5.2 billion in last fiscal and second best Seroquel garnered $3.4 billion. A strategic decision has been taken to outsource key manufacturing activities to planned phases to countries like China. The management wants to focus on drug development and marketing.
Manufacturing operations in the UK, Germany and Sweden are likely to be affected, although the shift could prove controversial because of recent concerns over Chinese saftey standards, the paper said.
A company spokesperson said the outsourcing is in its 'start-up phase', with submissions to regulatory agencies still to come.
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