Edited from “Chairman's statement”, “Chief executive officer’s review”, and “Strategy”, AstraZeneca, annual report
AstraZeneca’s strategy will focus on four main priorities; strengthening its pipeline, growing the business, reshaping the business and promoting a culture of responsibility and accountability.
“We are committed to delivering on our strategy and to changing the way we work so we are prepared for the future. Our strategy is clear. At its simplest, it is to create enduring value for shareholders by delivering medicines that make a meaningful difference to patient health,” says chief executive officer, David Brennan. 
The company states that it will continue to deliver strong, profitable growth in its emerging markets, while continuing its strategic investment in these markets aimed at ensuring that it is “appropriately resourced” to deliver the full potential of the business opportunities in these developing economies.
AstraZeneca says that it has to be “relentless in its pursuit of opportunities” to drive further efficiencies across the value chain. As well as the progress delivered in R&D, it has reshaped its manufacturing and packing activities to improve productivity whilst maintaining high standards of quality.
It says that to manage the challenges of its business environment and to maximise the opportunities to deliver sustainable, profitable growth it will focus its efforts on the following strategic plan in 2009.
Strategy
(1) Strengthening its pipeline of new medicines;
(2) Delivering the full potential of all its marketed medicines, through rigorous life-cycle management; and
(3) Challenging its cost structure to make room for further investment in R&D and externalisation, while increasing access to its medicines.
Sales growth
(1) Releasing the full potential of its marketed brands throughout their lifecycle;
(2) Growing its position in existing markets;
(3) Expanding its presence in key emerging markets; and
(4) To defend its intellectual rights.
Strong pipeline
(1) Deliver a portfolio of differentiated medicines that meet patients needs;
(2) Successful delivery to the market of next stage products that are currently in development;
(3) Pursuing value creating investment in significant targeted licensing and acquisition opportunities;
(4) Expansion of the development pipeline through in-house improvements;
(5) The management of its portfolio of products in development; and
(6) To migrate risks associated with innovative products.
Productivity
(1) Commitment to improving productivity;
(2) Making a strategic move into biologicals to build a major presence in the “fast growing” biopharmaceuticals sector; and
(3) The development of new business approaches that will meet the challenging needs and expectations of its regulators, payers, and patients.
Corporate responsibility
(1) Deliver its core values through a responsible approach to business;
(2) Explore new ways of working within its existing business model; and
(3) Make strategic investments in “promising” areas of healthcare.
A core priority for the company is to ensure that its growing range of candidate drugs (compounds with the potential to become new medicines) are developed effectively to meet the future needs of its patients. It has a wide range of compounds in early development, and a total of 34 projects in phase 1, 31 projects in phase 2 and 10 projects in phase 3 development. Whilst the majority of projects are small-molecules, an increasing proportion of its early development compounds are large biological molecules.
“Strengthening the pipeline remains our top priority. However, we will also continue to challenge all elements of our business to drive productivity and provide for the increased investment to support achievement of our strategic objectives”, says Brennan.
Looking ahead, AstraZeneca states that despite the “significant and economic challenges being experienced around the world” it is confident that the progress that it continues to make in its four priority areas means that AstraZeneca is well placed to manage the challenges and opportunities of a “rapidly” changing business environment.
“I believe that we have the strategy, the engines for growth and the levels of commitment it takes to continue making a meaningful difference in patient health through great medicines,” concludes Brennan.
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Financial highlights: AstraZeneca, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales ($ m) |
31,601 |
29,559 |
26,475 |
23,950 |
21,426 |
|
Operating Profit ($ m) |
9,144 |
8,094 |
8,216 |
6,502 |
4,547 |
|
Net Profit ($ m) |
6,130 |
5,627 |
6,063 |
4,724 |
3,812 |
|
Total Assets ($ m) |
46,784 |
47,957 |
29,932 |
24,840 |
25,652 |
|
Diluted earnings per share ($) |
4.20 |
3.73 |
3.85 |
2.91 |
2.28 |
|
Number of Employees |
67,000 |
67,900 |
66,600 |
64,900 |
64,200 |
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