Operational Dynamics

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Contents
 Background information
 Company structure
 Global presence
 Main product + issues on animal research
 Competition
 Vision / mission
 Financial facts
 PESTLE analysis
 Internal + external triggers – driving changes
 External manifestation
 Investment recommendation
 Conclusion
 References
Background
 AstraZeneca is a world leading pharmaceutical
company engaged in the research, development,
manufacture and marketing of pharmaceutical products.
 AstraZeneca discover new medicines that are designed
to improve the health and quality of life of patients
around the world.
 Headquarters – Corporate London, United Kingdom
and Research and Development Södertälje, Sweden.
 AstraZeneca was formed on 6 April 1999 through the
merger of Astra AB of Sweden and Zeneca Group PLC
of the UK – two companies with similar science-based
cultures and a shared vision of the pharmaceutical
industry.
Company Structure
 AstraZeneca analyses its performance in four key
segments:
1. The UK
2.Continental Europe
3.The Americas
4. Asia, Africa and Australasia
 In addition it divides its product portfolio into the
following key treatment areas:
1.cardiovascular, central nervous system,
2. gastrointestinal, infection,
3. oncology, pain control.
4. respiratory and inflammation.
Global Presence
Active in over 100 countries with a growing
presence in important emerging markets
including China.

Employ over 65,00 people (51% in Europe, 32%

in the Americas and 17% in Asia, Africa and
Australasia.

26 manufacturing sites in 18 countries.

Competition
Pfizer USA

GlaxoSmithKline UK

Merck & Co USA

Johnson and Johnson USA

Bristol-Myers Squibb USA

Financial Facts
 Sales in 2008 totaled $31.6 billion.

 Employees 66,000 in 2008.

 Research Development
. investment totaled over $5
billion. We have around 12,000 people in our R&D
organization and 17 principal R&D centers in eight
countries.
Main Products
Losec, a prescription medicine aimed at treating
heartburn, is the world's best selling drug. Sales
in 2000 were close to £ 250 million.
Therapies for the treatment of cancer,
gastroenterology (disorders of the stomach,
intestines and associated organs),
 Anesthesia, respiratory (breathing disorders)
 Cardiovascular (diseases of the heart and blood
vessels).
Vision for Growth
 AstraZeneca's strategy is built on the belief that
shareholders will receive most value from their
investment in the business as a result of year-on-year
sales growth.

 To do this they try to combine strong research and

development with effective sales and marketing
activities.

 One of the key benefits of the merger between Astra and

Zeneca is seen as their portfolio of new products in
development: AstraZeneca call this their 'product
pipeline'.
Animal Research
 Animal studies continue to play a vital role in the search
for new and improved medicines.
 Animal research helps scientists to bridge the gap
between the theories developed in the test tube and the
reality of introducing a new treatment to the patient.
 It takes between 10 and 15 years to develop a new
medicine and only a very small proportion of this time is
taken up by animal research.
 New medicines are tested on animals because
of the biological similarities between animals and
humans. The majority of research does not involve
animals at all – they are used only when it is necessary
and unavoidable.
Pestle slides
Internal + External Triggers
(Driving Change)
Continued . .
External Manifestation
UK community support and charitable donations policy
In-line with the UK and global policies, the programme supports two
key themes:
 improving healthcare in the local community; and
 promoting science education and skills, in particular amongst
young people.

Proud sponsors of the CREST awards

The AstraZeneca Science Teaching Trust

 An independent charity with a total trust fund of over £20 million
Continued . . .
Seroquel Scandal (early March 2009)
 More then 10,000 lawsuits filed
 Has cost them more than $593 million
How did this happen?
 Recent evidence points to fowl play from Dr. Wayne MacFadden,
AstraZeneca’s former US medical director for Seroquel and
director of clinical research in CNS, who had affairs with a clinical
researcher who authored publications favourable to Seroquel, and a
medical marketer who promoted Seroquel through medical
publications and other means.
Factors to look for when investing
Financially Conservative

Outward Looking

Cohesion

Delegation
Why invest ?
 Increase in ageing population

 Emergence of expanded populations in new markets

 Continued unmet medical needs

 Continued scientific and technological advance

Stats.
Continued . .
Ranking
Continued . . .
Reason to cutback:
 Good progress has been made in the implementation of previously
announced restructuring programmes. This has involved a
reduction of 12,600 positions. Annualised benefits of $1.6 billion
were realised by the end of 2009, which are on track to grow to
around $2.4 billion by the end of 2010.

 The next phase of restructuring, which includes completion of the

previous programmes, some additional initiatives in supply chain
and in selling, general & administration, as well as the R&D
initiatives, will result in the realisation of a further $1.9 billion in
estimated annual benefits by the end of 2014. These programmes
may, when fully implemented, involve up to an additional 10,400
job reductions
continued . .
Conclusion

Therefore would we recommend investing

in Astrazeneca??
NO!!!
References
http://www.pharmainvesting.com/investin
g-on-pharmaceutical-companies-a-way-
to-battle-recession.php