Pharmaceutical makers AstraZeneca said deals to centralise data management and the restructuring of its sales and marketing meant first quarter profits were not as high as hoped, but the company is on track to achieve its full year financial target.
The company said $117 million in costs for the company restructure were charged to the first quarter accounts. AstraZeneca overhauled its European sales and marketing organisation in 2007. It also struck a deal with outsource service provider Cognizant. A central data management service is provided to AstraZeneca under the terms of the deal and the pharmaceutical company believes it will “deliver economies of scale and costs savings”.
Last year AstraZeneca also struck at £832m outsourcing deal with IBM. Richard Williams, CIO at AstraZeneca said the deal with Big Blue, provided their 60 national divisions with email, hosting, networking, PC management, server, storage and service management support. Both the IBM and Cognizant deals are described by AstraZeneca as allowing the company to deliver more medicines to the medical world.
Profits for AstraZeneca were up 12 percent; chief executive officer David Brennan said the first quarter performance puts the company on track to achieve its full year targets. Sales increased by four percent.