ASTRAZENECA TO FOCUS ON ANTI-INFECTIVES, CUT 3,000 JOBS

AstraZeneca has announced an agreement to acquire Arrow Therapeutics, a UK-based biotechnology company focused on the development of antiviral drugs. The total share capital of Arrow Therapeutics will be purchased for $150 million in cash. The transaction is expected to close early in 2007.

In addition, AstraZeneca has announced its fourth-quarter and full-year financial results, which include a roughly 28 percent increase in net profits in 2006. The company also said it plans to eliminate approximately 3,000 positions globally over the next three years.

AstraZeneca said the Arrow deal will strengthen its portfolio of anti-infectives and provide a widely recognized expert group and technology platform in an area of research that complements internal capabilities in antibacterials. The deal also fits with AstraZeneca's decision to refocus its disease area research, with anti-infectives and antibacterials now one of the company's key therapy areas.

Arrow Therapeutics has developed several antivirals for the hepatitis C virus (HCV) and the respiratory syncytial virus (RSV). These assets include two anti-HCV compounds that both target the NS5a protein, including A-831, in Phase I development. Arrow's most advanced compound is RSV604, currently in Phase II as a first-in-class, small-molecule, oral anti-RSV compound.