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Running head: ASTRAZENECA PLC. GROUP ASSIGNMENT: ASTRAZENECA PLC Campbellsville University Group V Maheswari Mandha (559064) Anuhya Dasari (558337) Sai Dinesh Sura (551862) Harsheth Uma Shankar (564340) Dharshan Challa
AstraZeneca PLC. 2 Historical Summary of AstraZeneca Plc. AstraZeneca is publicly traded company in the research-based biopharmaceutical space. The firm mainly operates in the prescription medicine sector with a global market reach spanning all across Europe, parts of Asia and the Americas. The company’s legacy focuses on a product development lifecycle of discovery, development and commercialization of prescription medicine. Their product line is broadly divided into cash cows like respiratory and inflammation along with cardiovascular departments. They also have products that are mature such as gastrointestinal. Their products that receive extra funding from Research and Development which are still in early stage innovation are neuroscience, oncology and infectious disease department ( CompanyHistory.com, n. d. ). Although the company has been historically trading with a ticker symbol of AZN since May of 1993, it really only came to existence after 6 th of April 1999. AstraZeneca is a child product of two major pharmaceutical players in Europe. Astra AB headquartered in Sweden was founded in 1913 by a group of 400 doctors and apothecaries to cater to the local market’s need of household medicine. The firm has been a steady ray of hope since then providing technologically advanced and nuanced medicinal products that are a common name among household, big hospital sectors and renowned industrial benchmark for innovation, discovery and reliability ( DrugWatch, n. d. ). This firm went public in May of 1993 with an initial stock price of $5. Zeneca Pharmaceuticals was a UK based well- managed business entity that broke apart from a conglomerate organization separating into 4 business segments including agriculture-based products to petrochemicals to a company that is relatively young, Zeneca Pharmaceuticals. The division was rather favorable to Zeneca’s growth trajectory since it had come from the roots of a well-managed conglomerate where operations
AstraZeneca PLC 3 were viewed as the heart of the business. Many profitability and revenue indices guided the operations and kept it well-managed in terms of maximizing share-holder values. However, up until then, the firm did not have sufficient capital to become a key player in the pharmaceutical industry. The division helped Zeneca PLC to acquire new sources of funds that helped it establish a superfluous pharmaceutical organization that spanned borders in the Europe ( DrugWatch, n. d. ). Finally, in December of 1998, Zeneca acquired Astra in swift merger that had no trouble identifying the synergies and expansion of marketing reach. Both firms were operating in the respiratory and inflammation space along with a strong presence in cardiovascular space. They aimed to produce complementary products that would produce greater value when consumed together to a number of ailments. They were also owners of mature gastrointestinal medicines market where additional synergies to their global reach. Their global market reaches as well as their brand value in specialist and hospital care units surged. The stock price soared to $30 post official merger on 6 th of April, 1999 ( CompanyHistory.com, n. d. ). Some of the Post-merger activities of AstraZeneca worth noting is its venture into the oncology space as a major player with its monotherapy drug being approved in Japan in 2002. The approval of a large cell Malignant Lung Cancer drug marked its entry into the Bio Commerce industry. Its future acquisitions aimed to expand its portfolio in the direction of infectious disease and oncology sector. It acquired a UK based biotech company KuDOS for £120 million in 2005. It entered many collaborative joint venture agreements with other players in the biopharma space such as Astex. It enjoys a coveted Diamond Membership Status in Pennsylvania Bio Commerce Organization. The firm conducts its US based operations from Wilmington, Delaware. In 2013, the firm went through a major restructuring that allowed it to enter the US market through an
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AstraZeneca PLC. 4 aggressive stance that allowed faster mergers and acquisitions. It acquired Spirogen in the US for $440 million marking its official entry ( CompanyHistory.com, n. d. ) . Competitors AstraZeneca has many competitors in the industry. One of them is Sanofi which provides healthcare solutions and operates in three segments, Consumer Healthcare, Pharmaceuticals, and Human Vaccines. The Novartis Company researches, develops and sells various healthcare products, GSK which is a science-led healthcare company, and AMGEN which discovers develops manufactures, and sells products. AstraZeneca Plc. Industrial position AstraZeneca is a growing and well competitive company in the biopharmaceutical industry. It’s a science-led biopharmaceutical business that develops and sells a variety of medicine for various diseases. It’s one of the world’s major pharmaceutical companies that specialize in drugs for metabolic, cancer, cardiovascular, gastrointestinal infection, respiratory, and oncology. Its main profitable drugs are cardiovascular drug Brilliant, cholesterol reducer Crestor, Symbicort for asthma, and reflux remedy Nexium. The company is one of the global drug companies that focus on finding the cure to the rising new diseases and it has more than thirty industries globally to initiate the process. Its research and development mainly focus on four nations; China, Sweden, UK, and the US (Viña et.al, 2019). It produces a wide range of product portfolio that covers more than 100 countries. Moreover, AstraZeneca is a therapeutic leader in cardiovascular, oncology, gastrointestinal, anesthesia, respiratory problems, and central nervous. It’s one of the companies that invest heavily in research and development each year to come up with new drugs for new diseases. In 2019, it invested $6B to help in the research process. It was ranked at position seven
AstraZeneca PLC 5 among the drug companies that focus more on research and development to help curb the rising diseases. Each year, AstraZeneca collaborates or acquire a drug company to help introduce a new drug. Its team believes in providing the best service to their patients through innovation and exploitation of technology to identify new opportunities. Besides, in the biopharmaceutical industry, AstraZeneca is also considered one of the top drug companies that have acquired many other drug firms to boost the industry. AstraZeneca yearly acquires and collaborates with various firms to boost its drug portfolio and develop new drugs ( https://www.astrazeneca.com/ ). For example, in 2017 where it collaborated with Daiichi Sakyo Corporation on an experiment to come up with a cure to breast cancer. The collaboration was successful, and they developed a drug called trastuzumab deruxtecan which is one of the most selling breast cancer drugs globally. It also collaborated with the same company to develop an antibody-drug conjugate called DS-1062. It has collaborated with Genzyme, IQVIA, Orca Pharmaceuticals, and Emergent Bio-Solution among very many firms globally. AstraZeneca has acquired and collaborated with many drug firms in the industry which helps to boost its position. Due to the successful innovation, research and development, collaborations, and acquisition, AstraZeneca is ranked among the top companies in sales. In 2015, it was ranked at position eight and in 2017 it was among the top ten companies globally. Despite that AstraZeneca spends more of its income on expenses like research and development, it still emerges as one of the top companies based on sales in the industry. This simply means that it focuses on developing the main drugs for the rising diseases that people are more focused at. It offers exactly what the patients and the general company requires. Besides, due to its innovation, AstraZeneca is one of the companies that are not affected by the current pandemic since they offer drugs and vaccines to help infected individuals ( https://www.astrazeneca.com/ ).
AstraZeneca PLC. 6 Besides the sales, it has contributed and currently occupy a greater position in the industry due to this pandemic. It recently collaborated with Emergent Bio Solutions Inc. to help in the production of 300M doses for the US. It has linked manufacturing deals globally to help meet its target of producing 2B doses and 1.2B agreement with the US government. AstraZeneca vaccine is among the first vaccines to move into mid-stage trials and it’s more likely to be significant in the current pandemic. Besides, among the more than 100 development vaccines, the AstraZeneca vaccine is one of the vaccines that have been accepted due to their great impact. Recent Developments in the Company/Industry AstraZeneca is a pharmaceutical and biopharmaceutical company. The vital drugs manufactured by AstraZeneca are Losec, Betaloc, Plendil, Nexium, Crestor, Symbicort, etc. Generally, for any pharmaceutical company focus in the 2020 pandemic is a vaccine for COVID-19. Like any other pharmaceutical company, AstraZeneca's recent development is working on a new vaccine to the COVID-19 with the University of Oxford. AstraZeneca is collaborating with several countries and organizations to make sure the vaccine is available globally. The company has an initial agreement of a minimum of 400 million doses and already set for manufacturing for one billion doses and planned to deliver them in September 2020. This later agreement will be to increase the supply of doses which will be the global vaccine. As of May 2020, AstraZeneca has the support of almost $1 billion from the US Biomedical Advanced Research and Development Authority (BARDA). BARDA is funding for development, production, and delivery for the vaccine. This is in stage III trial with 30k participants. AstraZeneca had agreements with Coalition for Epidemic Preparedness Innovations (CEPI), Gavi the Vaccine Alliance, and the World Health Organization (WHO), to distribute the vaccine globally. AstraZeneca is thinking of
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AstraZeneca PLC 7 agreement with the Serum Institute of India to start the production and distribution in India. As of June 2020, AstraZeneca had a couple of new deals, one of them with Microsoft company which makes the vaccine production double which should provide 2 billion doses. (Lancet,2020) AstraZeneca released a statement that the plan is on track, but the company is not sure about the spread of disease. AstraZeneca is trying its cancer medicine on COVID-19 to see its response. Trails are started and the company says, “This is the fastest launch of any clinical trial in the history of AstraZeneca”. As of August 2020, Phase III trials of AZD1222 begun. People older than 18 years are eligible for participation. The main purpose of the trial is to find if AZD1222 can prevent COVID-19 after a couple of doses. Participants are monitored after a couple of injections for safety. Participants should be followed for two years after the vaccination to check the side effects. (Kirby,2020) The future direction of AstraZeneca Plc. AstraZeneca plc. is a pharmaceuticals sector company accomplished by the effects with direct opportunities and indirect and ready to face challenges that might take place in the coming decades. This is explained in a detailed report, which is summarized below (Viña et al., 2019). It seems the late 2020s consider nearly 30-40 percent to ensure the global population determines significant strain represents health systems over the developed nation. However, it is engaged with the voting block that shows demographic would actively participate in increased public health services to ensure support (Viña et al., 2019). Economic strain considers massive demographic would encourage developed areas to maintain fast-track and approval process for the innovation of new drugs could improve the physical health of seniors (Viña et al., 2019).
AstraZeneca PLC. 8 By the year 2030, treatments would emerge stunt and later reverse effects. These treatments provide annually overtime to become affordable towards results process longer average lifespan for humans and a windfall for the pharma industry (Viña et al., 2019). By 2050, the population of the world would raise up to nine billion, and the maximum amount of people will be living cities. The result will be most of the human population's future seen regular pandemic outcomes that spread more and faster and hard to cure (Viña et al., 2019). Industries will lead to new AI-assisted innovative drugs discovered for treatments to cure for a faster rate (Viña et al., 2019). The other significance of AstraZeneca Pharmaceutical company Environmental change is going on quickly from at any rate the most recent decade as we, people spoil our environmental factors, not caring all that we use where does it go toward the end? One of the questionable themes to examine as certain individuals acknowledging it, some not and some realizing it yet intentionally denying it because they know, they are larger portion of it and should be hold accountable. Organizations when all is said in done from decades have been utilizing ecological assets to create items to profit themselves, produce incomes, drive up financial exchange, leaving carbon emanations, adding to environmental change, polluting seas, lands and pull off doing as such. As of late, we have been seeing the adjustments in atmosphere, summers getting sultrier and more sweltering, North pole liquefying endlessly, adding to rise the ocean levels, murdering creatures and ocean animals. Some notable individuals and organizations have been denying the environmental change, for example, our President Trump calling it 'hoax'. Before AstraZeneca, numerous organizations yet none of US drug organizations have been resolved to lessen their
AstraZeneca PLC 9 carbon impressions, attempting to diminish adding to environmental change all in all, despite the fact that they recognize and comprehend that it's their duty moreover. At the starting of the year 2020, AstraZeneca have committed to make the company into zero carbon by 2025 and carbon neutral by 2030. In an interview with Bloomberg news, AstraZeneca’s CEO Pascal Soriot said, “I have children and I have a grandson, and they’re going to look at me and say, ‘what did you do?’” when asked, what was the tipping point? Also expressed that “it was coming from employees to commit”. The change has been slow because first of all it is not incentivized from the perspective because it is business. With business all people invested or involved with it has to be on same page to take step to do something especially shareholders. Soriot with Bloomberg news interview told “The pressure is not – I believe not – yet strong enough, to be frank” (Mast, 2020) and “Companies will have to be incentivized to do something.” (Mast, 2020) AstraZeneca has intended to put $1 billion in respects with its vow to stop environmental change, make strides towards it, for example, plan to reforestation of 50 million trees calling it 'AZ woodland' in participation with One Tree Planted which is a non-benefit association whose objective is worldwide reforestation, beginning at Australia, France, Indonesia then different nations to follow in next five years. AstraZeneca have additionally intended to change their vitality power utilization into 100% inexhaustible sources, for example, heat and power, likewise making their vehicles to electric based (AstraZeneca’s ‘Ambition Zero Carbon’ strategy… chain by 2030, 2020). Generally, organizations like AstraZeneca is making stride advances with its guarantee to stop environmental change, keep steady over it supposing that we don't deal with our planet at
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AstraZeneca PLC. 10 that point consequently it won't care of our people in the future. It has just been dealing with people and each living thing on planet since life was known to be on planet earth. Large organizations like AstraZeneca, regardless of what industry are the enormous spoilers and contaminations of condition need to consider themselves responsible and act liable for it. Conclusion Considering the future trend of the Gen Z population (Viña et al., 2019), it is duly noted that the future of biopharmaceuticals is booming because of the world’s optimistic and positive outlook on health management and the demand for superior healthcare. AstraZeneca has emerged as a research and development powerhouse in the Bio Commerce sector with a fast-paced growth trajectory based on disruptive innovation in the cancer specialty treatment drug research, discover, manufacturing and market cap. This ensures a long-term sustainability and a short-term cash cow status for the business. Apart from its entry into the US – which is a saturated market for pharma – by its acquisition strategy, AstraZeneca has put itself on the watchlist of low-risk high profit investment portfolio. With our predictions of a short-term exponential growth and a long-term investor confidence index, AstraZeneca is definitely a buy-and-hold investment that would complement a biopharmaceutical portfolio for the times when AstraZeneca embarks on its controversial acquisition and merger strategies. We urge the investors to buy now and hold the investment for long term except for the times when AstraZeneca considers another merger and Acquisitions project.
AstraZeneca PLC 11 References AstraZeneca Media. Sep 1, 2020. Mitigating the risk of pharmaceuticals in the environment. https://www.astrazeneca.com/media-centre/articles/2020/mitigating-the-risk-of-pharmaceuticals-in-the- environment.html AstraZeneca Media. Jan 22, 2020. AstraZeneca’s ‘Ambition Zero Carbon’ strategy to eliminate emissions by 2025 and be carbon negative across the entire value chain by 2030 . https://www.astrazeneca.com/media-centre/press-releases/2020/astrazenecas- ambition-zero-carbon-strategy-to-eliminate-emissions-by-2025-and-be-carbon- negative-across-the-entire-value-chain-by-2030-22012020.html Bloomberg Markets and Finanace. Jan 22,2020. Astrazeneca CEO on Climate Change, China, Drug Industry Challenges. https://www.youtube.com/watch?v=1m2aLTUww48 CompanyHistory.com. (n. d.). AstraZeneca Plc history, profile and corporate video. Retrieved from https://www.companieshistory.com/astrazeneca/#:~:text=AstraZeneca%20was%20formed%20on %206,vision%20of%20the%20pharmaceutical%20industry . DrugWatch. (n. d.). AstraZeneca Retrieved from https://www.drugwatch.com/manufacturers/astrazeneca/#:~:text=Though%20its%20roots %20trace%20back,ICI)%2C%20headquartered%20in%20London.&text=Zeneca%20bought %20Astra%20for%20%2435,forming%20the%20new%20company%20AstraZeneca . https://www.astrazeneca.com/ Kirby, T. (2020). Development of potential COVID-19 vaccines continues to accelerate. The Lancet Microbe , 1 (3), e109.
AstraZeneca PLC. 12 Lancet, T. (2020). Global governance for COVID-19 vaccines. Lancet (London, England) , 395 (10241), 1883. Mast, Jason. Jan 23, 2020. Pascal Soriot and AstraZeneca commit to zero-carbon by 2025, carbon- neutral by 2030. Where's the rest of Pharma? Endpoints news. https://endpts.com/pascal-soriot- and-astrazeneca-commit-to-carbon-neutrality-by-2025-wheres-the-rest-of-pharma/ Oxford Analytica. Vaccine nationalism could prolong pandemic. Emerald Expert Briefings , (oxan-db). Viña, G., Skelding, R., Einhorn, R., Kent, M., Hursit, J., Hägerstrand, C. M. & Stone, N. (2019). AstraZeneca PLC (AZN). Update , 7 , 00.
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