In the February 15 issue, IBO detailed R&D reorganizations at major pharmaceutical companies. Since then, Merck has announced its 2009 results, including a new Merger Restructuring Program. The Program addresses the combined operations of Merck and Schering-Plough, which Merck acquired in November 2009. Merck plans to cut 15% of its 100,000 employees by the end of 2012 as part of a plan to save $2.6–$3 billion annually over two years. For R&D, cuts will come from the consolidation of certain operations. In 2009, Merck’s R&D increased 21.6% to $5,845 million, including Schering-Plough’s post-acquisition R&D spending. Capital spending for R&D facilities totaled $161.2 million. The company forecasts 2010 R&D expenditures to be the same or slightly higher. However, Merck CFO Peter Kellogg stated that, on a standalone basis, Merck and Schering were each expected to “significantly increase” R&D spending in 2010.

In March, AstraZeneca announced further details of its R&D reorganization that is expected to affect 3,500 employees. The company announced a narrower research focus by eliminating discovery research for drugs to treat thrombosis, acid reflux disease, ovarian and bladder cancers, systemic scleroderma, schizophrenia, bipolar disorder, depression and anxiety, hepatitis C, and vaccines excluding respiratory syncytial virus and influenza. As a result, the company plans to close R&D sites in Leicestershire and Cambridge, UK, as well as in Lund, Sweden. In addition, R&D work will be reduced at its Avlon, UK, and Wilmington, Delaware, facilities.