AstraZeneca PLC (AZN): history, ownership, mission, how it works & makes money

A Brief History of AstraZeneca PLC (AZN)

Formation and Early Years

AstraZeneca PLC was formed in April 1999 through the merger of Astra AB and Zeneca Group PLC. Astra AB, originally founded in 1913, was a Swedish pharmaceutical company, while Zeneca was a spin-off from the British chemical company Imperial Chemical Industries (ICI) in 1993. The merger combined the strengths of both companies, creating a significant global player in the pharmaceutical industry.

Key Products and Innovations

Since its formation, AstraZeneca has brought several key products to market, contributing significantly to its revenues. Notable products include:

• Omeprazole (Prilosec), launched in 1989, generated revenues of $4.2 billion in 2002.
• Atorvastatin (Lipitor), introduced in 1997, achieved peak sales of approximately $13 billion in 2006.
• The breast cancer drug, Anastrozole (Arimidex), introduced in 1995, reached peak sales of $1.3 billion in 2009.

Financial Statistics

AstraZeneca has seen fluctuating revenues over the years, often influenced by the introduction of new drugs and patent expirations. Here are relevant financial figures:

Acquisitions and Strategic Partnerships

AstraZeneca has expanded its portfolio through strategic acquisitions. Key acquisitions include:

• MedImmune, acquired in 2007 for approximately $15.6 billion.
• Acerta Pharma, acquired in 2015 for up to $7 billion.
• Alexion Pharmaceuticals, acquired in 2020 for $39 billion.

COVID-19 Vaccine Development

In response to the COVID-19 pandemic, AstraZeneca developed the Vaxzevria vaccine in collaboration with the University of Oxford. As of 2023, over 3 billion doses have been distributed globally. The company reported approximately $5 billion in revenue from COVID-19 vaccine sales in 2021.

Stock Performance and Market Capitalization

AstraZeneca's stock performance has been robust in recent years. As of October 2023, its market capitalization stands at approximately $218 billion. The stock price has shown significant growth post-COVID with an increase of over 60% from 2020 to 2023.

Future Outlook

AstraZeneca continues to invest heavily in research and development, focusing on key therapeutic areas such as oncology, cardiovascular, renal, and respiratory diseases. The company has allocated approximately $7 billion for R&D in 2023. It is also focusing on developing next-generation treatments, particularly in immunotherapy and gene therapy.

A Who Owns AstraZeneca PLC (AZN)

Shareholder Structure

AstraZeneca PLC (AZN) has a complex shareholder structure, comprising institutional investors, retail investors, and company insiders. As of the latest available data in 2023, the following breakdown illustrates the ownership stakes:

Major Institutional Shareholders

Several institutional investors hold significant stakes in AstraZeneca PLC, cementing their influence over corporate governance. The major institutional shareholders as of October 2023 include:

Recent Stock Performance

As of October 2023, AstraZeneca's stock price is $58.32 per share. The company has shown resilience in the stock market, with a year-to-date performance reflecting the following metrics:

Executive Ownership

The ownership stakes held by AstraZeneca's executives further illustrate their commitment to the company. The top executives as of 2023 include:

Global Presence and Impact

AstraZeneca operates in over 100 countries, with significant revenue generation across various markets. The approximate revenue by region for the fiscal year 2022 is detailed below:

AstraZeneca PLC (AZN) Mission Statement

Overview

The mission statement of AstraZeneca PLC emphasizes the company's commitment to innovation, patient care, and the improvement of health outcomes worldwide. AstraZeneca operates with the vision to deliver life-changing medicines and address unmet medical needs.

Core Values

• Patient Focus: Committed to putting patients at the heart of everything.
• Innovation: Striving for scientific excellence and innovation in developing new medicines.
• Integrity: Conducting business with the highest ethical standards.
• Collaboration: Working together with various stakeholders, including healthcare professionals, governments, and patients.

Financial Overview

AstraZeneca has experienced significant financial growth, reflecting its commitment to research and development. As of the end of 2022, the company reported:

Strategic Goals

AstraZeneca's mission is driven by strategic goals that include:

• Expanding Therapeutic Areas: Focus on oncology, cardiovascular, renal, and respiratory diseases.
• Global Access: Increasing access to medicines in low- and middle-income countries.
• Sustainability: Achieving net-zero emissions by 2025 and reducing waste and water usage.

Recent Developments

In accordance with its mission, AstraZeneca has launched several drugs that are redefining treatment paradigms:

• COVID-19 Vaccine: The development and distribution of the Vaxzevria vaccine, with over 2.5 billion doses delivered globally.
• Oncology Treatments: Advancements in treatments such as Tagrisso and Lynparza, leading the market in lung cancer therapies.

Commitment to Research and Development

Research and development remain central to AstraZeneca's mission, with a substantial portion of its revenue allocated to R&D:

Corporate Responsibility

AstraZeneca reinforces its mission through corporate responsibility initiatives that aim to improve health and well-being globally:

• Access to Medicines: Programs to ensure availability of medications in underserved areas.
• Health Education: Investments in community health education programs.
• Environmental Impact: Ongoing efforts to minimize environmental footprint through sustainable practices.

How AstraZeneca PLC (AZN) Works

Company Overview

AstraZeneca PLC (ticker: AZN) is a global, science-led biopharmaceutical company that focuses on the discovery, development, and commercialization of prescription medicines, primarily for the treatment of diseases in areas such as oncology, cardiovascular, respiratory, and inflammation. As of October 2023, the company operates in over 100 countries.

Financial Performance

In the fiscal year 2022, AstraZeneca reported total revenue of $44.35 billion, which marked a growth of 19% compared to the previous year. The net profit for the same year was approximately $6.29 billion.

Research and Development

AstraZeneca's commitment to research and development (R&D) is evident in its significant investment levels. In 2022, R&D expenditure reached $8.45 billion, representing about 19% of total revenue. The company has multiple ongoing clinical trials, with over 200 projects in various stages of development.

Product Portfolio

The product portfolio of AstraZeneca includes several blockbuster drugs, with notable sales figures:

• Tagrisso (osimertinib) – Revenue of approximately $5.95 billion in 2022.
• Farxiga (dapagliflozin) – Revenue of approximately $2.89 billion in 2022.
• Imfinzi (durvalumab) – Revenue of approximately $1.66 billion in 2022.
• Brilinta (ticagrelor) – Revenue of approximately $1.56 billion in 2022.

Global Presence

AstraZeneca has a robust global presence encompassing several regions. As of 2023, the geographical distribution of revenue is as follows:

Collaboration and Partnerships

AstraZeneca engages in strategic collaborations and partnerships to enhance its drug pipeline and market reach. Notable collaborations include:

• Collaboration with the University of Oxford for the development of the COVID-19 vaccine, resulting in over 3 billion doses distributed globally.
• Partnership with Daiichi Sankyo for enhancing the oncology pipeline, particularly for the drug Enhertu (trastuzumab deruxtecan).
• Collaborative efforts with various biotech firms for innovative therapies in cardiovascular and respiratory diseases.

Market Challenges and Opportunities

The company faces several market challenges, including:

• Intense competition in the pharmaceutical sector, especially in oncology and diabetes.
• Patent expirations for key products, with generics emerging as a significant threat.
• Regulatory hurdles in different markets impacting drug approvals.

However, AstraZeneca also identifies opportunities:

• Expansion into emerging markets like India and Brazil, where healthcare access is increasing.
• Focus on innovative treatments, with a strong pipeline of biologics and targeted therapies.
• Growing demand for preventive therapies in the wake of global health issues.

Sustainability Initiatives

AstraZeneca is committed to sustainability and corporate responsibility:

• Target to achieve net-zero emissions across its value chain by 2025.
• Investment in sustainable practices in manufacturing and supply chain operations.
• Programs aimed at increasing access to medicines in low and middle-income countries.

How AstraZeneca PLC (AZN) Makes Money

Overview of Revenue Streams

AstraZeneca generates revenue primarily through the discovery, development, and commercialization of pharmaceutical products. The company focuses on several therapy areas including Oncology, Cardiovascular, Renal & Metabolism, and Respiratory.

Revenue Breakdown by Therapy Area

Sales of Key Products

Key products that contribute significantly to AstraZeneca’s revenue include:

• Tagrisso: Revenue of $5.5 billion in 2022.
• Farxiga: Revenue of $2.6 billion in 2022.
• Imfinzi: Revenue of $1.5 billion in 2022.
• Brilinta: Revenue of $1.1 billion in 2022.

Geographical Revenue Distribution

Partnerships and Collaborations

AstraZeneca engages in numerous partnerships to enhance its research capabilities and expand its product offerings. In 2022:

• Collaboration with Amgen for the development of innovative medicines.
• Partnership with Merck & Co. for the co-development and commercialization of Lynparza.
• Agreements with Oxford University for vaccine development, notably the COVID-19 vaccine.

Research and Development Investments

AstraZeneca invests heavily in R&D to sustain its pipeline, spending approximately $7.2 billion in 2022, representing around 23% of its total revenue.

Growth Strategies

The company is focused on:

• Expanding its oncology portfolio.
• Increasing market penetration in emerging markets.
• Investing in biotechnology and rare diseases.

Financial Performance Metrics