AstraZeneca PLC: Pharmaceuticals and Healthcare Company Profile, SWOT & Financial Report by ICDResearch

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Synopsis
ICD Research's "AstraZeneca PLC: Pharmaceuticals and Healthcare - Company Profile & SWOT Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major products and services, swot analysis, business description, and company history.

Summary
This report is a crucial resource for industry executives and anyone looking to access key information about "AstraZeneca PLC"

The report utilizes a wide range of primary and secondary sources, which are analyzed and presented in a consistent and easily accessible format. ICD Research strictly follows a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report.

Scope
• Examines and identifies key information and issues about "AstraZeneca PLC" for business intelligence requirements.
• Studies and presents the company's strengths, weaknesses, opportunities (growth potential) and threats (competition). Strategic and operational business information is objectively reported.
• Provides data on company financial performance and competitive benchmarking.
• The profile also contains information on business operations, company history, major products and services, key employees, locations and subsidiaries.

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Key Highlights
AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company based in the UK. The company develops, produces and markets a range of prescription medicines for inflammation; gastrointestinal, cardiovascular, neurological and respiratory diseases; oncology, and infectious diseases. The company's portfolio inclu

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									AstraZeneca PLC

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AstraZeneca PLC                                                                 Financial Snapshot

                                                                                Operating Performance
Fast Facts
                                      2 Kingdom Street, London, W2 6BD,United   The company reported revenue of US$33,591 million
Headquarters Address
                                      Kingdom                                   during the fiscal year 2011 (2011). The company's
                                                                                revenue grew at a CAGR of 3.25% during 2007–
Telephone                              + 44 20 76048000
                                                                                2011, with an annual growth of 0.97% over 2010. In
                                                                                2011, the company recorded an operating margin of
Fax                                    + 44 20 76048151                         38.09%, as against 34.55% in 2010.

Website                               www.astrazeneca.com
                                                                                Revenue and Margins
Ticker Symbol, Stock Exchange         AZN, London Stock Exchange (LON)

Number of Employees                   57,200

Fiscal Year End                       December

Revenue (in US$ million)              33,591




SWOT Analysis

Strengths                             Weaknesses                                Return on Equity

Diversified areas of research         Legal proceedings                         The company recorded a return on equity (ROE) of
                                                                                42.95% for the fiscal year 2011, as compared to its
                                                                                peers, Pfizer Inc. (Ticker: PFE), Merck & Co., Inc.
Strengthening operational performance Product recall                            (Ticker: MRK) and Sanofi S.A. (Ticker: SAN), which
                                                                                recorded ROEs of 12.18%, 11.50% and 10.13%
Strengthening solvency position                                                 respectively. Furthermore, the company reported an
                                                                                operating margin of 38.09% in 2011.
Strong focus in emerging markets
                                                                                Return on Equity
Opportunities                         Threats
                                      Competitive pressures from generic
Product approval
                                      manufacturers

Strategic acquisitions                Shortage of skilled labor

                                      Stringent regulations pertaining to
Strategic agreements
                                      pharmaceutical industry in Europe

Strategic reorganization




                                                                                Liquidity Position

                                                                                The company reported a current ratio of 1.49 in 2011,
                                                                                as compared to its peers, Pfizer Inc., Merck & Co.,
                                                                                Inc. and Sanofi S.A., which recorded current ratios of
                                                                                2.06, 2.04 and 1.53 respectively. As of December
                                                                                2011, the company recorded cash and short-term
                                                                                investments of worth US$11,819 million, against
                                                                                US$1,853 million current debt. The company reported
                                                                                a debt to equity ratio of 0.40 in 2011 as compared to
                                                                                its peers, Pfizer Inc., Merck & Co., Inc. and Sanofi
                                                                                S.A., which recorded debt to equity ratios of 0.47,
                                                                                0.32 and 0.27 respectively.




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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 9
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................9
    2.2       Key Financial Performance Indicators .................................................................................................................12
      2.2.1       Revenue and Operating Profit .........................................................................................................................12
      2.2.2       Asset and Liabilities .........................................................................................................................................13
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................14
      2.2.4       Operational Efficiency ......................................................................................................................................15
      2.2.5       Solvency ..........................................................................................................................................................16
      2.2.6       Valuation ..........................................................................................................................................................17
    2.3       Competitive Benchmarking ..................................................................................................................................18
      2.3.1       Market Capitalization .......................................................................................................................................19
      2.3.2       Efficiency ..........................................................................................................................................................20
      2.3.3       Valuation ..........................................................................................................................................................21
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................22
      2.3.5       Liquidity ............................................................................................................................................................23
3     SWOT Analysis ...................................................................................................................................... 24
    3.1       SWOT Analysis - Overview ..................................................................................................................................24
    3.2       Strengths ..............................................................................................................................................................24
    3.3       Weaknesses .........................................................................................................................................................25
    3.4       Opportunities ........................................................................................................................................................25
    3.5       Threats .................................................................................................................................................................26
4     History .................................................................................................................................................... 27
5     Key Employees ...................................................................................................................................... 30
6     Key Employee Biographies................................................................................................................... 31
7     Locations and Subsidiaries .................................................................................................................. 32
    7.1       Head Office ..........................................................................................................................................................32
    7.2       Other Locations and Subsidiaries ........................................................................................................................32
8     Appendix ................................................................................................................................................ 36
    8.1       Methodology .........................................................................................................................................................36
    8.2       Ratio Definitions ...................................................................................................................................................36
    8.3       Disclaimer.............................................................................................................................................................40




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List of Tables

Table 1: Major Products and Services....................................................................................................................................7
Table 2: Key Ratios - Annual ..................................................................................................................................................9
Table 3: Key Ratios - Interim ................................................................................................................................................11
Table 4: Key Capital Market Indicators ................................................................................................................................11
Table 5: History.....................................................................................................................................................................27
Table 6: Key Employees .......................................................................................................................................................30
Table 7: Key Employee Biographies ....................................................................................................................................31
Table 8: Subsidiaries ............................................................................................................................................................32




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AstraZeneca PLC - SWOT Profile                                                                                                                                             Page 3
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List of Figures

Figure 1: Revenue and Operating Profit ...............................................................................................................................12
Figure 2: Financial Position ..................................................................................................................................................13
Figure 3: Net Debt vs. Gearing Ratio ...................................................................................................................................14
Figure 4: Operational Efficiency ...........................................................................................................................................15
Figure 5: Solvency ................................................................................................................................................................16
Figure 6: Valuation ...............................................................................................................................................................17
Figure 7: Market Capitalization .............................................................................................................................................19
Figure 8: Efficiency ...............................................................................................................................................................20
Figure 9: Valuation ...............................................................................................................................................................21
Figure 10: Turnover – Inventory and Asset ..........................................................................................................................22
Figure 11: Liquidity ...............................................................................................................................................................23




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1 Business Analysis

1.1   Company Overview

AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company based in the UK. The company develops, produces and
markets a range of prescription medicines for inflammation; gastrointestinal, cardiovascular, neurological and respiratory
diseases; oncology, and infectious diseases. The company’s portfolio includes Atacand for hypertension and heart failure;
Crestor for managing cholesterol levels; Nexium for acid reflux; Losec/Prilosec for the treatment of acid related diseases;
Seloken/Toprol-XL for hypertension, heart failure, and angina; Seroquel IR for schizophrenia and bipolar disorders; and
Seroquel XR for schizophrenia, bipolar disorder, and major depressive disorders among others. AstraZeneca operates
through 14 principal research and development (R&D) centers in eight countries and 23 supply and manufacturing sites in
16 countries. The company operates in over 100 countries across North and South America, Europe, the Middle East,
Africa and Asia-Pacific. AstraZeneca is headquartered in London, the UK.

1.2   Business Description

AstraZeneca is a pharmaceutical company based in the UK.
The company principally operates through one reportable business segment: discovery, development, manufacturing and
marketing of prescription medicines for six important healthcare areas including cancer, cardiovascular, gastrointestinal,
infection, neuroscience, and respiratory and inflammation.
Depending upon sales by therapy area, the company classified its operations into seven divisions: Cardiovascular,
Gastrointestinal, Infection and Other, Neuroscience, Oncology, Respiratory and Inflammation, and Other business.
The company, under its Cardiovascular division, develops medicines for various cardiovascular diseases including high
blood pressure, abnormal levels of blood cholesterol and thrombosis; and diabetes. The company’s key products for
cardiovascular diseases and diabetes include Crestor, Atacand, Seloken/Toprol-XL, Tenormin, Plendil, Zestril,
Brilinta/Brilique, Axanum, Komboglyze, and Onglyza. In FY2011, the company’s Cardiovascular division accounted for
30.40% of its total revenue.
AstraZeneca’s Gastrointestinal division develops medicines for dyspepsia and gastroesophageal reflux disease (GERD).
Key products of this division include Nexium, Losec/Prilosec and Entocort. In FY2011, Gastrointestinal division accounted
for 16.48% of the company’s total revenue.
The Infection division of the company develops anti-bacterial and anti-viral medicines. It also develops various vaccines.
The company’s portfolio includes Synagis for respiratory syncytial virus infected disease, Merrem or Meronem and
Cubicin for serious bacterial infections, and FluMist or Fluenz for influenza. In FY2011, the Infection division accounted for
5.52% of the company’s total revenue.
The Neuroscience division develops medicines for Alzheimer’s disease, analgesia or chronic pain, bipolar disorder,
depression or anxiety and schizophrenia. The company’s portfolio includes Seroquel, Zomig, Diprivan, Naropin, Vimovo,
EMLA and Xylocaine. In FY2011, Neuroscience division accounted for 21.45% of the company’s total revenue.
The company’s Oncology division develops medicines for treatment of prostate cancer, breast cancer and certain benign
gynaecological disorders. The company’s key products for oncological disease include Arimidex, Casodex, Iressa,
Zoladex, Caprelsa, Faslodex and Nolvadex. In FY2011, Oncology division accounted for 11.03% of the company’s total
revenue.
Under its Respiratory and Inflammation division, the company develops medicines for asthma, chronic obstructive
pulmonary disease (COPD), lupus, rheumatoid arthritis and scleroderma. The company’s key products include Symbicort,
Symbicort Turbuhaler, Pulmicort, Pulmicort Respules, Rhinocort, Oxis and Accolate. In FY2011, the Respiratory and
Inflammation division accounted for 13.30% of the company’s total revenue.

AstraZeneca’s Other business division include operations of the company’s subsidiary Astra Tech and Aptium Oncology.
In FY2011, the Others businesses division accounted for 1.82% of the company’s total revenue.
The company operates 23 supply and manufacturing plants sites in 16 countries across the globe. AstraZeneca, through
a network of its wholly-owned local marketing companies, distributors and local representatives, operates in more than
100 countries across North and South America, Europe, Middle East, Africa and Asia-Pacific. In FY2011, the company
had 727 suppliers in 55 countries.
AstraZeneca’s research and development activities focus on the translation of leading edge science into innovative new
medicines which makes significant changes in the lives of people. Its efforts for disease area focus include diabetes,
obesity, infection, analgesia and inhalation. The company operates through 14 principal research centers in eight
countries including the UK, the US, Sweden, France, Japan, China, Canada and India.
Geographically, the company operates through four segments: the UK, Continental Europe, The Americas and Asia,
Africa and Australasia. In FY2011, the company’s the Americas segment accounted for 49.07% of its total revenue
followed by Continental Europe with 26.48%, Asia, Africa and Australasia with 21.87% and the UK with 2.58%.
In October 2012, the company signed an agreement with Ironwood Pharmaceuticals, Inc. to co-develop and co-
commercialize Ironwood’s linaclotide in China. In the same month, the company signed an exclusive worldwide licensing
agreement for Ardelyx’s NHE3 inhibitor program, which include the Phase 2-ready lead compound RDX5791, for the
treatment of complications associated with end-stage renal disease (ESRD) and chronic kidney disease (CKD).

In August 2012, the European Commission granted marketing authorization to the company’s new intravenous
cephalosporin antibiotic, ZINFORO (ceftaroline fosamil), for the treatment of adult patients with complicated skin and soft


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AstraZeneca PLC - SWOT Profile                                                                                       Page 5
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tissue infections (cSSTI) or community acquired pneumonia (CAP). In the same month, the company signed an
agreement with Pfizer Inc. for the over-the-counter rights for NEXIUM (esomeprazole magnesium), a leading prescription
drug currently approved to treat the symptoms of gastroesophageal reflux disease (GERD). Under the terms of the
agreement, Pfizer will acquire the exclusive global rights to market NEXIUM in the US, Europe and the rest of the world.

In July 2012, the company sold the assets of its subsidiary, Aptium Oncology.
In April 2012, the company entered into a definitive merger agreement with Ardea Biosciences, Inc., a biotechnology
company based in the US. Under the terms of the agreement, the company will acquire Ardea. In the same month,
AstraZeneca and Amgen signed an agreement to jointly develop and commercialize five monoclonal antibodies from
Amgen’s clinical inflammation portfolio.

In March 2012, the company’s biologics arm MedImmune received approval from the US Food and Drug Administration
(FDA) for FluMist Quadrivalent (Influenza Vaccine Live, Intranasal), a drug for the prevention of influenza.

In January 2012, the company entered into a three-year collaboration agreement with IMS Health, a provider of
information, services and technology for the healthcare sector, to advance the use of real-world evidence based on
observational and retrospective studies throughout Europe.




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AstraZeneca PLC - SWOT Profile                                                                                  Page 6
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1.3       Major Products and Services

AstraZeneca PLC produces medicines for a wide variety of therapeutic applications. The company’s key products include
the following:

Table 1: Major Products and Services
Products:

Cardiovascular:

Atacand

Crestor

Exanta

Imdur

Inderal

Plendil

Ramace

Seloken ZOK

Tenormin

Zestril

Gastrointestinal:

Entocort

Losec

Nexium

Infection:

Merrem/Meronem

Synagis

FluMist

Neuroscience:

Carbocaine

Citanest

Diprivan

EMLA

Marcaine/Sensorcaine

Mysoline

Naropin

Seroquel

Vivalan

Xylocaine

Zomig

Oncology:

Arimidex

Casodex

Cosudex


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AstraZeneca PLC - SWOT Profile                                                                                Page 7
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Table 1: Major Products and Services
Faslodex

Iressa

Valodex

Tomudex

Zoladex

Respiratory and Inflammation:

Accolate

Bambec

Bricanyl

Oxis

Pulmicort

Rhinocort

Symbicort
Source: ICD Research




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AstraZeneca PLC - SWOT Profile                                                      Page 8
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2 Analysis of Key Performance Indicators
2.1    Five Year Snapshot: Overview of Financial and Operational Performance Indicators

The company reported revenue of US$33,591 million during the fiscal year 2011 (2011). The company's revenue grew at
a CAGR of 3.25% during 2007–2011, with an annual growth of 0.97% over 2010. During 2011, operating margin of the
company was 38.09% in comparison with operating margin of 34.55% in 2010. In 2011, the company recorded a net profit
margin of 29.72% compared to a net profit margin of 24.21% in 2010.

Table 2: Key Ratios - Annual

                Key Ratios             Unit/Currency         2011       2010        2009       2008        2007
Equity Ratios

EPS (Earnings per Share)                    US$                 7.30        5.57        5.19        4.20       3.73

Dividend per Share                          US$                 2.80        2.55        2.30        2.05       1.87

Dividend Cover                            Absolute              2.61        2.18        2.26        2.05       2.00

Book Value per Share                        US$                17.99       16.47       14.24       10.99      10.14
Profitability Ratios

Gross Margin                                 %                 82.22       81.23       82.97       80.40      79.69

Operating Margin                             %                 38.09       34.55       35.19       28.94      27.38

Net Profit Margin                            %                 29.72       24.21       22.93       19.31      18.93

Profit Markup                                %                462.47      432.73      487.15      410.27     392.32

PBT Margin (Profit Before Tax)               %                 36.82       32.99       32.94       27.47      27.01

Return on Equity                             %                 42.95       34.69       36.40       38.34      37.86

Return on Capital Employed                   %                 34.51       29.22       30.96       27.27      24.70

Return on Assets                             %                 18.90       14.35       13.69       12.99      11.66

Return on Fixed Assets                       %                 43.63       37.08       37.04       29.42      26.12

Return on Working Capital                    %                165.01      137.75      188.61      372.62     455.23
Growth Ratios

Sales Growth                                 %                  0.97        1.42        3.81        6.91      11.65

Operating Income Growth                      %                 11.32        -0.42      26.24       12.97       -1.48

EBITDA Growth                                %                 12.66        1.57       24.49        8.74       -6.56

Net Income Growth                            %                 23.97        7.07       23.27        9.04       -7.41

EPS Growth                                   %                  9.91       19.96       16.14        7.60      13.83

Working Capital Growth                       %                  -7.07      36.34      149.39       38.02      -76.26
Cost Ratios

Operating Costs (% of Sales)                 %                 61.91       65.45       64.81       71.06      72.62

Administration Costs (% of Sales)            %                 32.35       31.19       34.22       33.94      35.90
Liquidity Ratios

Current Ratio                             Absolute              1.49        1.50        1.35        1.18       1.12

Quick Ratio                               Absolute              1.37        1.40        1.25        1.06       0.98

Cash Ratio                                Absolute              0.75        0.75        0.65        0.33       0.39
Leverage Ratios

Debt to Equity Ratio                      Absolute              0.40        0.40        0.54        0.74       1.03

Net Debt to Equity                        Absolute              0.47        0.47        0.59        0.81       1.12

Debt to Capital Ratio                     Absolute              0.25        0.23        0.30        0.35       0.46
Efficiency Ratios



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AstraZeneca PLC - SWOT Profile                                                                              Page 9
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Table 2: Key Ratios - Annual

Asset Turnover                   Absolute          0.64        0.59        0.60        0.67        0.62

Fixed Asset Turnover             Absolute          5.23        4.78        4.49        4.49        3.56

Inventory Turnover               Absolute          3.22        3.71        3.19        3.79        2.83

Current Asset Turnover           Absolute          1.43        1.32        1.38        1.99        1.74

Capital Employed Turnover        Absolute          1.45        1.43        1.59        1.99        2.00

Working Capital Turnover         Absolute          4.33        3.99        5.36      12.88       16.62

Revenue per Employee              US$        535,742.00   530,606.00 523,190.00 504,003.00 471,435.00

Net Income per Employee           US$        159,219.00   128,437.00 119,952.00   97,305.00   89,234.00

Capex to Sales                      %              3.86        6.56        4.83      12.78         5.68

R&D to Sales                        %            13.41        12.30       13.28      15.86       17.46
Source: ICD Research




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AstraZeneca PLC - SWOT Profile                                   
								
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