Operational Dynamics Operational Dynamics

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ContentsContents 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 StructureAstraZeneca analyses its performance in

four key segments: 1. The UK2.Continental Europe3.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 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.

CompetitionCompetitionPfizer USA

GlaxoSmithKline UK

Merck & Co USA

Johnson and Johnson USA

Bristol-Myers Squibb USA

Financial FactsFinancial FactsSales 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.

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Main ProductsLosec, 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 GrowthAstraZeneca'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 ResearchAnimal 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 Pestle slides

Internal + External Internal + External TriggersTriggers(Driving Change)(Driving Change)

Continued . . Continued . .

External Manifestation 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 . . .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 Factors to look for when investinginvestingFinancially Conservative

Outward Looking

Cohesion

Delegation

Why invest ?Why invest ? Increase in ageing population

Emergence of expanded populations in new markets

Continued unmet medical needs

Continued scientific and technological advance

Stats.Stats.

Continued . .Continued . .

RankingRanking

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 . .continued . .

ConclusionConclusion

Therefore would we recommend investing in Astrazeneca??

NO!!!

References References http://

www.pharmainvesting.com/investing-on-pharmaceutical-companies-a-way-to-battle-recession.php