PEST ANALYSIS

INTRODUCTION
Founder: Pascal Soriot.

Founded: On 6th April 1999.

Distinction: As a leading Biotechnological and

Pharmaceutical manufacturer.

Joint Venture: AstraZeneca was founded by merger of

Astra AB (Sweden) and Zeneca Group PLC (U.K)

Primary Products: Nexium (Esomeprazole).

Market capital: US$ 3.406 Bn as per 2016.

Employees: 59700

Major Competitors: Pfizer, GSK, Roche Holding.

Headquarters: Cambridge.

Subsidiaries: MedImmune
• The Company focuses on three main therapy areas: Oncology,
Cardiovascular & Metabolic Disease and Respiratory, while
selectively pursuing therapies in Autoimmunity, Infection and
Neuroscience.

• AstraZeneca is active in over 100 countries employing over 60,000

people and has high investment in R&D department.

• They have ten products with global sales above 1 billion dollar.

• Backed by a strong research base and extensive manufacturing and

commercial skills, it provide innovative, effective medicines that make
a real difference for patients in important areas of healthcare.

• The revenue of the company in 2009 was increased by 7% as well as

new emerging markets businesses grew strongly by 12% revenue in
constant currency time.

• There was improved in efficiency throughout the organization and

some extra gains within other income.
 POLITICAL
Government regulations and legal issues have a direct impact on the
way AstraZeneca operates.
Company reported drop in revenues in the
second quarter, hit by a loss of patents on
blockbuster medicines such as the
Cholesterol pill Crestor & Symbicort.

U.S. sales of Crestor dipped 22% in 2016 to

$7.4 billion. Sales of Symbicort dropped
18% in the U.S. to $1.2 billion, a loss the
company attributes to competition and
pricing pressures.

Sales of both have fallen by double-

digit percentages this year, which
dragged total product sales 11%
lower in the first half of 2017 than
figures recorded during the first half
of 2016.
AstraZeneca also faced the negative impact of a
loss of patent exclusivity for Nexium and Seroquel.

A collaboration with US rival Merck to study cancer

drug combinations using AstraZeneca’s treatment
Lynparza, which is approved for ovarian cancer.
Merck will pay AstraZeneca up to $8.5bn in
exchange for half of future Lynparza sales.
Merck will pay AstraZeneca an initial $1.6 billion,
$750 million for license options and up to $6.15
billion "upon successful achievement of future
regulatory and sales milestones”.
Wall Street analysts have projected AstraZeneca’s 2017 revenues to be
approx. $21.6 billion, a YoY (Year Over Year) fall of about 6.3%

Despite a significant fall in 2016 revenues, company has managed to control

a fall in its core EPS through effective cost optimization measures.
 ECONOMICAL
Focusing on Economic Growth by:
Targeting Emerging Markets:
• Focused on delivering innovative medicines by accelerating our
investment in Emerging Markets capabilities, with a focus on China
and other leading markets, such as Russia and Brazil.
• Expanding our commercial reach through multi-channel marketing
and sales force excellence; building strong local medical and
scientific affairs teams; and transforming our capabilities to support
new products and improve access and affordability.
• Strengthening oncology franchise and working to maximize the
success of our diabetes medicines and established
brands Symbicort, Nexium and Crestor.

Transform through specialty care, devices and biologics :

• Focusing on specialty care medicines, devices and biologics.
• A greater focus on innovative and differentiated delivery devices
affords patient choice while ensuring product durability.
Of the 34 analysts
covering AstraZeneca in
February 2017,

Eight have rated it a

“Strong Buy” and
13 have rated it a “Buy”

Eleven analysts have

rated it a “Hold” while
two have rated it a “Sell”

None of the analysts

have rated it a “Strong
Sell.”

About 62.0% of analysts

have given AstraZeneca
some form of “Buy”
Recommendation.
• Despite a significant fall in 2016 revenues, AstraZeneca managed to
control a fall in its core EPS through effective cost optimization measures.

• The company saw a YoY (Year Over Year) fall of around 5.0% in R&D
expenses. It reduced its SG & A (selling, general, and administrative)
expenses YoY by 9.0% in 2016.

What Next?
Future Growth Drivers:

Diabetes drug Farxiga and

respiratory drug Symbicort
have maintained dominance
in their respective classes
of drugs based on sales
volumes.

Farxiga is expected to be a
major revenue driver in
2017.
• Tagrisso, a third-line eGFR-(estimated glomerular filtration rate)
mutated lung cancer drug, reported revenues of $423.0 million in
2016.
• AstraZeneca expects to see a further
rise in Tagrisso’s revenues after it is
launched in China.

• The company has been focused mainly

on the Asian market for Tagrisso since
40%–45% of lung cancer patients in Asia
suffer from eGFR mutations.

• Oncology drugs Lynparza and Tagrisso

are expected to be major revenue
contributors for AstraZeneca in 2017.

• The company expects CVMD

(cardiovascular and metabolic disease)
drugs Brilinta and Farxiga to each earn
revenues in excess of $1.0 billion in
2017.
 SOCIAL
AstraZeneca believes everyone should have access to their medicines and
treatments regardless of where they live or their income, particularly those
who have traditionally been underserved by the industry.

How it is done?
• Developing health systems
• Delivering sustainable benefits
• Improving affordability

Programmes:
• Healthy Heart Africa (HHA) is company’s innovative programme
committed to tackling hypertension (high BP) and the increasing burden
of cardiovascular disease (CVD) in Africa.
• HHA aims to reach 10 million hypertensive patients across Africa by
2025.
• Supporting local health systems by increasing awareness of the
symptoms and risks of hypertension and by offering education,
screening, reduced-cost treatment and control.
The Young Health Programme addresses prevention of non-communicable
diseases by reducing the uptake of unhealthy behaviors in young people.

Started in November 2010, YHP is AstraZeneca’s global community

investment program and is designed to help young people in need around the
world deal with the health issues they face and improve their chances for a
better life in the future.
• The program is initiated in five resettlement colonies around New
Delhi.

• The focus area of the program includes addressing health issues

related to Sexual and Reproductive Health, TB, Dengue, Malaria,
Substance Abuse and Life Style diseases.

• YHP India has directly been able to reach out to 89,493 young people
(40,271 boys and 49,222 girls) and has influenced 84,387 wider
community members, including health professionals, educators and
policy makers.

• The YHP trained an additional 818 adolescents as Peer Educators

during the second year of operations.

• The establishment of 15 Health Information Centers (HICs) which act

as a forum for the youth.

• The second vital approach is the training and support of 1,581 Peer
Educators, of which 814 are girls, who are actively responsible for
delivering health messages to other youngsters in school and
communities.
 TECHNOLOGY
Driving sustainable growth through innovation!
AstraZeneca is committed to
driving scientific advances in small
molecules, oligonucleotides and
other emerging technology
platforms to push the boundaries of
medical science.

Company has spent decades

creating unique enabling tools
and technologies of interest to
the scientific community of
investigators.
• Our Open Innovation programme is providing scientists from Cancer
Research UK (CRUK) and the Medical Research Council (MRC) with
the opportunity to work with the world’s most advanced drug
discovery robot: NiCoLA-B

• NiCoLA-B works three times

more quickly than previous
drug discovery robots, using
innovative acoustic delivery
technology to screen up to
300,000 compounds a day in
the search for new treatments
for cancer and other serious
diseases.

• Unlike older robots, NiCoLA-B

senses and responds to the
scientists that work alongside
it in the laboratory.
To ensure the IMED Biotech Unit remains at the cutting-edge of scientific
innovation, company has established IMED Futures programme – a set of
initiatives exploring the next generation of scientific development.

Revealing the dynamic structure of ATM (Ataxia Telangiectasia Mutated) by

technological advances in electron microscopy uncovers new structural
and mechanistic insights into this key DNA damage response target.

ATM is a key trigger protein in the DNA damage response and a prime
therapeutic target in cancer.

Development of Single molecule

microscope/TIRF (Total internal
reflection fluorescence)
Microscope which helps screen
and track molecules at 1,000-fold
lower concentrations than
previously due to the ultra-
sensitivity of the equipment and
comes with lower reagent
consumption.
How is it effective to the company?
• The cost of reagents is reduced significantly due to single molecule
detection.

• It provides data across different populations to detect heterogeneities,

to see how drugs act differently on particular forms of an enzyme or
receptor that wouldn’t be able to see in traditional assays.

• It eventually provides an opportunity to further develop personalized

healthcare approach.

The impact?
Three successful projects:

• Demonstrating ligand receptor selectivity

• Interaction of nuclear receptors with cofactors

• Measuring kinetic binding data for unstable targets

Bibliography
http://www.moneycontrol.com/india/stockpricequote/pharmaceuticals/astrazenecapharma/AZP

https://www.astrazeneca.com/

Prepared By –
Mrunali Rane
Mansi Pethani
Faiz Sayyed
Rohil Shelar
Anjali Singh