AstraZeneca

AstraZeneca (LON: AZN) is a multinational pharmaceutical company that discovers, develops, and manufactures prescription drugs. The company was founded in 1999 as a result of a USD 38 billion merger between medium-sized drug manufacturers Astra AB (Sweden) and Zeneca Group plc (UK), as both companies faced patent expiration risks on several major blockbuster drugs. After the merger, the firm’s headquarters and R&D center were established in the UK and Sweden, respectively. In 2023, the company generated revenue of USD 464 billion and was ranked eighth among the top 10 largest pharma players in the world, based on revenue. As of December 2023, the firm had 13 blockbuster drugs (revenue of more than USD 1 billion) in its arsenal and a total of 178 projects in its pipeline . 

Three key therapeutic areas make up AstraZeneca's portfolio: Oncology, BioPharmaceuticals, and Rare Disease. As a leading drug maker in the Oncology space, with an extensive portfolio of cancer treatments, this segment was the largest contributor to product sales in 2023 (~40% of product sales). AstraZeneca also develops treatments for cardiovascular, renal, and metabolic (CVRM) diseases, respiratory and immunology conditions, as well as vaccines and immune therapies under its BioPharmaceuticals division. These three BioPharmaceuticals segments (CVRM, respiratory and immunology, and vaccines and immune therapies) accounted for 24%, 14%, and 2% of group product revenue in 2023, respectively. In addition, the Rare Disease and Other Medicines segments contributed 18% and 3% to group product revenue in 2023, respectively. AstraZeneca was the first major pharmaceutical company to jointly develop and deploy a Covid-19 viral vector vaccine, Vaxzevria, which contributed only ~0.03% to group product sales in 2023. 

The US market accounted for 41% of AstraZeneca’s total revenue in 2023, followed by Emerging Markets (including China and India) (27%), Europe (21%), and the “Established Rest of the World” (12%). In terms of prescription sales, AstraZeneca ranked as the second largest multinational pharmaceutical company for innovative branded products and was ranked fifth among the fastest-growing top 10 multinational pharmaceutical companies in emerging markets in 2022. As AstraZeneca moves forward, it remains focused on investing in its R&D efforts and expanding its portfolio of new-generation blockbuster drugs in Oncology (immuno-oncology), BioPharmaceuticals, and Rare Disease beyond 2025. The pharma company is currently developing new drug modalities, including oligonucleotide, antibody-drug conjugate, bispecific mini-bodies, and cell therapy. The company also plans to continue its expansion via the bolt-on acquisition of small- to medium-sized companies.