CONTEMPORARY

Management

FINAL PROJECT
BY:-

HEND

SAMAH

KAREEM

MOHAMED

AHMAD

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COMPANY PROFILE

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HISTORY
• Astra AB was founded in 1913 in Södertälje, Sweden, by 400 doctors and apothecaries.

• In 1993 the British chemicals company ICI (established from four British chemical companies)
demerged its pharmaceuticals businesses and its agrochemicals and specialities businesses, to
form Zeneca Group PLC.

• The fusion between Swedish pharmaceutical company, Astra AB, and UK-based Zeneca Group
plc, was one of the largest-ever European mergers at the time

• When the fusion was announced in 1998, it was called a “merger of equals to create a global
leader in pharmaceuticals”. On completion of the merger, Astra Shareholders held a 46.5%
share, while Zeneca Shareholders held 53.5%.

• Finally, in 1999 Astra and Zeneca Group merged to form AstraZeneca plc, with its headquarters
in London.

• In 1999, AstraZeneca identified a new location for the company's US base, the "Fairfax-plus"
site in North Wilmington, Delaware.

• Since the merger it has been among the world's largest pharmaceutical companies and has
made numerous corporate acquisitions, including Cambridge Antibody Technology.

• Astra finally became profitable in 1929, eventually increasing sales 100-fold by 1957.

• The company took its first step into independent research in the 1930s by developing drugs like
Hepaforte — a treatment for a disease that prevents the body from absorbing enough Vitamin
B-12.

• The company purchased rivals Tika Pharmaceuticals and Paul G. Nordstrom’s factories in 1942
to become the dominant drug company in Sweden.

• The company expanded worldwide, forming subsidiaries in Europe, the U.S., South America and
Australia by the 1970s

• On 19 May 2014 AstraZeneca rejected a "final offer" from Pfizer of £55 per share, which valued
the company at £69.4 billion (US$117 billion). The companies had been meeting since January
2014. If the takeover had proceeded, Pfizer would have become the world's biggest drug maker.
The transaction would also have been the biggest foreign takeover of a British company. Many
in Britain, including politicians and scientists, had opposed the deal.

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 ACQUISITION HISTORY
o AstraZeneca (Merged 1999)
▪ Astra AB (Founded 1913)
▪ Tika (Acq 1939)
▪ Zeneca (Spun off from Imperial Chemical Industries, 1993)
▪ Salick Health Care (Acq 1996)
▪ Ishihara Sangyo Kaisha (US fungicide operations, Acq 1997)
o KuDOS Pharmaceuticals (Acq 2005)
o MedImmune Biologics
▪ Cambridge Antibody Technology (Acq 2006)
▪ Aptein Inc (Acq 1998)
▪ MedImmune (Acq 2007)
▪ Definiens[110] (Acq 2014)
o Arrow Therapeutics (Acq 2007)
o Novexel Corp (Acq 2010)
o Guangdong BeiKang Pharmaceutical Company (Acq 2011)
o Ardea Biosciences (Acq 2012)
o Amylin Pharmaceuticals (Acq 2012 jointly with Bristol-Myers Squibb)
o Spirogen (Acq 2013)
o Pearl Therapeutics[111] (Acq 2013)
o Omthera Pharmaceuticals[112] (Acq 2013)
o ZS Pharma (Acq 2015)
o Alexion Pharmaceuticals[113] (Acq 2021)
▪ Proliferon Inc (Acq 2000, restructured into Alexion Antibody Technologies Inc)
▪ Enobia Pharma Corp (Acq 2011)
▪ Synageva BioPharma (Acq 2015)
▪ Wilson Therapeutics (Acq 2018)
▪ Syntimmune (Acq 2018)
▪ Achillion Pharmaceuticals (Acq 2019)
▪ Portola Pharmaceuticals (Acq 2020)
▪ Caelum Biosciences (Acq 2021)

In June 2007, AstraZeneca completed the acquisition of vaccine maker MedImmune, buying its drug-
development pipeline for $15.2 billion. However many analysts felt the company had paid far too much
for the US-based company, especially as it had few late-stage drugs with major commercial potential.

Having already acquired UK-based Cambridge Antibody Technology ( CAT)in 2006, AstraZeneca
merged these two companies to create a dedicated global biologics organisation known as
MedImmune.

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KEY DATES:
➢ 1913: Astra AB formed in Sweden.

➢ 1926: Imperial Chemical Industries (ICI, parent company of Zeneca PLC) founded in the
UK.
➢ 1943: Astra develops Xylocane, which becomes the world's largest-selling local
anesthetic.
➢ 1988: Hanakan Mogren appointed CEO of Astra AB.

➢ 1993: Zeneca PLC demerged from ICI.

➢ 1996: Astra's Losec becomes world's best-selling prescription drug.

➢ 1999: Astra AB and Zeneca PLC merge to form AztraZeneca PLC.

FACTORIES ACTIVITY

• AstraZeneca plc is a British-Swedish multinational pharmaceutical and biotechnology company.

• its headquarters at the Cambridge Biomedical Campus in Cambridge, England.

• It has a portfolio of products for major diseases in areas including oncology, cardiovascular,
gastrointestinal, infection, neuroscience, respiratory, and inflammation.

• It has been involved in developing the Oxford-AstraZeneca COVID-19 vaccine. To date, two
billion doses of the COVID-19 vaccine developed by the University of Oxford and AstraZeneca
have been released to more than 170 countries.

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PRODUCTS AND SERVICES
• In 1948, Astra developed the blockbuster numbing agent Xylocaine (lidocaine), giving it a
worldwide presence for the first time. The U.S. Food and Drug Administration approved it three
years later, and the U.S. became its largest market. The success of the drug allowed Astra to
invest more money into research

• The company took its first step into independent research in the 1930s by developing drugs
like Hepaforte — a treatment for a disease that prevents the body from absorbing enough
Vitamin B-12.

• AstraZeneca manufactures, markets and/or distributes more than 39 drugs in the United
States. Medications listed here may also be marketed under different names in different
countries.

WHAT ARE ASTRAZENECA BIGGEST

DRUGS?
• Crestor, Symbicort, and Nexium are the best performing drugs by a large margin, however,
with many of their exclusivities expiring; revenues for these drugs are expected to half by 2023.

• As of 2020, AstraZeneca's top pharmaceutical product by revenue was Tagrisso, a medication

used in the treatment of non-small-cell lung carcinomas. During that year, Tagrisso generated
nearly 4.3 billion U.S. dollars in revenue for the

• Farxiga) (dapagliflozin) is a type 2 diabetes drug jointly developed by AstraZeneca and Bristol-
Myers Squibb (BMS). It is the first SGLT2 (sodium / glucose cotransporter 2) class drug
developed by BMS and AstraZeneca. FARXIGA can help people with CKD by reducing the risk
of further worsening of kidney disease

• FRIDAY, Sept. 20, 2019 (HealthDay News) -- A new pill to lower blood sugar for people with
type 2 diabetes was approved by the U.S. Food and Drug Administration on Friday. The drug,
Rybelsus (semaglutide) is the first pill in a class of drugs called glucagon-like peptide (GLP-1)
approved for use in the United States.Sep 20, 201

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 PRODUCTS AND SERVICES
• In 1948, Astra developed the blockbuster numbing agent Xylocaine (lidocaine), giving it a
worldwide presence for the first time. The U.S. Food and Drug Administration approved it three
years later, and the U.S. became its largest market. The success of the drug allowed Astra to
invest more money into research

• The company took its first step into independent research in the 1930s by developing drugs
like Hepaforte — a treatment for a disease that prevents the body from absorbing enough
Vitamin B-12.

• AstraZeneca manufactures, markets and/or distributes more than 39 drugs in the United
States. Medications listed here may also be marketed under different names in different
countries.

PROJECTS OF ASTRAZENECA EGYPT

PULMO-AID PROJECT

Specialized Hypertension Clinics

In collaboration with the Ministry of Health and the Egyptian Hypertension Society AstraZeneca
is establishing specialized Hypertension Clinics in MOH and university hospitals, aiming at
reaching a broader patient segment, upgrading knowledge of MOH HCPs in management of
Hypertension and enhancing the disease awareness of patients.

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I-Protect Project

I-Protect project is an integrated patient-centric initiative by the National Institute of Diabetes

and Endocrinology (NIDE) in Egypt, sponsored by AstraZeneca. The project started in 2014 and
has been implemented in important centers & hospitals with a plan to cover all geographical
regions in Egypt. The main objectives of the Programme are HCP education, pa tient education
and early detection of diabetes complications (retinopathy, nephropathy & neuropathy).

Pharma Excellence - Good Pharmacy Practice

• The Pharma Excellence - Good Pharmacy Practice (GPP) project is a 2-year program
accredited by St. John’s University, New York, USA in partnership with the Egyptian
Syndicate of Pharmacists and the Faculty of Pharmacy at Al-Azhar University. The
program aims to improve pharmacy practice through offering courses on drug information
center, clinical pharmacy, good storage practices, supply chain management and patient
counseling.

• FRIDAY, Sept. 20, 2019 (HealthDay News) -- A new pill to lower blood sugar for people with
type 2 diabetes was approved by the U.S. Food and Drug Administration on Friday. The drug,
Rybelsus (semaglutide) is the first pill in a class of drugs called glucagon-like peptide (GLP-1)
approved for use in the United States.Sep 20, 2019

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 ASTRAZENECA: SIX SCANDALS TO
REMEMBER
1961: One of the most infamous of all drugs, Thalidomide is mainly associated with West German
pharmaceutical company Chemie Grünenthal GmbH, but AstraZeneca’s predecessor company Astra
(which later merged with Zeneca Group to form AstraZeneca) manufactured and sold it in Sweden.
When given to pregnant women Thalidomide caused the deaths of many infants and severe
disabilities in those who survived. Marketed under the name Neurosedyn, it affected 180 Swedish
children during the 1960s. The babies were born with severe disabilities and a third died soon after
birth. According to a report on Radio Sweden, Astra settled with victims and their families in 1969
and agreed to pay damages, but never admitted any guilt.

2002: Multiple patients suffered a form of pneumonia and some died from
taking Iressa, AstraZeneca’s lung cancer treatment drug. According to the Japan Times, of the 7,000
people that took the drug in the country, about 160 died of interstitial pneumonia, believed to be a
side effect of the drug. The company was forced to apply a clearer warning label regarding the
danger.

2003: A man committed suicide during an AstraZeneca-funded drug trial that was accused of grossly
unethical practices. The company was trying to show its new antipsychotic drug – Seroquel – was
better than the existing generic version, hoping that a new patented drug would bring bumper profits.
But in the trial, Seroquel was found to perform worse than the existing drug and to cause undesirable
side effects, including the increased the risk of weight gain and diabetes. Tragically, one man – Dan
Markingson – committed suicide during the trial. He had been recruited to it despite experiencing
psychosis so acutely that he had repeatedly been judged unable to make medical decisions for
himself. His mother made numerous attempts to pull him out of the trial due to the deterioration of his
mental health. The case generated international outrage over his treatment by the University of
Minnesota, which conducted the trial, and led to the passing of a new law in 2009 by the state
legislature. For more on this, read a heart-breaking.

2005: A study by Tufts University found that Crestor, a cholesterol drug by AstraZeneca, could cause
kidney failure and other side effects. The rate of kidney damage was found to be 75 times higher in
some patients taking Crestor compared to other statins (drugs used to treat cholesterol). The
previous year, the Public Citizen’s Health Research Group, a USA based watchdog, had called for an
investigation of AstraZeneca for reporting these side effects months later than required. In the wake
of the study, the company was forced to publish warnings about these side effects. Despite
campaigning by concerned groups, the drug remains on the market.

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2010: Another scandal involving Seroquel saw AstraZeneca fined $520 million for the way it
marketed its antipsychotic drug. The acting U.S. attorney for the Eastern District of Pennsylvania said
elderly people, veterans and prisoners were treated as “guinea pigs”. According to ABC News, the
company paid kickbacks to doctors and promoted the drugs for a variety of illnesses for which it had
never been tested, including Alzheimer’s and depression. The drug was also prescribed to children
even though it had not been approved for their use.

2016: AstraZeneca was fined $5.5 million by the US government for bribing doctors in China and
Russia. Health website Statnews reported that the US Security and Exchange Commission (SEC)
charged that AstraZeneca sales and marketing staff, along with “multiple levels” of company
managers at subsidiaries, “designed and authorized several schemes” to convey gifts, conference
expenses, travel and cash, in order to influence purchases of AstraZeneca drugs.

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VISION, MISSION & STRATEGY

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VISION
We want to transform healthcare, change the lives of billions of people for
the better and address some of the biggest healthcare challenges facing
humankind.
Our ambition is to stop the progress of these often degenerative,
debilitating, and life-threatening conditions, achieve remission, and one
day cure them

MISSION
is to discover new ways to improve and extend people's lives.

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STRATEGY
The fundamentals of our strategy are clear. We focus on innovative science and leadership in our
three main therapy areas: Oncology; Cardiovascular, Renal and Metabolism; and Respiratory
diseases. Backed by a global presence, with strength in Emerging Markets, particularly China, we
have a portfolio of specialty and primary care medicines.

At the same time, the world around us is changing and the burden of disease is increasing. We are
responding by increasing our focus on growth through innovation - being more patient-centric, doing
more with technology, digital and data, and advancing more cutting-edge science.

The company implemented a ‘5R’ framework to make sure every drug it investigates has a higher
chance of success – right target, right tissue, right patient, right safety and right commercial”

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SWOT ANALYSIS
STRENGTH
1. Rapid decision making & streamlined due diligence processing
2. Emerging Markets Strategy.
We have a three-pillar strategy in Emerging Markets, which was originally built upon the
China strategy of Expansion, Innovation and Partnership.
Expansion, we can reach more patients with our medicines in previously-inaccessible
countrieS.
Innovation, our aim is to strongly contribute to patient-centric, fully-integrated ecosystems.
We also aim to discover and develop new medicines in Emerging Markets that are fit for
our patient populations in those markets.
Partnership is more than just a word or intention – at AstraZeneca we proactively work
with local and central governments and local partners. We also work closely with local
healthcare providers and local capital markets where possible.
3. Active in over 100 countries employing over 60,000 people
4. High investment in R&D with 11,000+ dedicated R&D team(5 r framework.
5. Ten products with global sales above 1 billion dollar
6. Product portfolio includes cancer, cardiovascular, gastrointestinal, infection, neuroscience,
respiratory and inflammation medicine
7. 7-Focusing on quality, not quantity(compete on differniation).competitiveness
8. 8.High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of customer
satisfaction among present customers and good brand equity among the potential
customers.
9. Good Returns on Capital Expenditure– AstraZeneca PLC is relatively successful at
execution of new projects and generated good returns on capital expenditure by building
new revenue streams.

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WEAKNESS

1. It was affected by drug shortage crisis as in case of Cefotan

2. Product discontinuation affects the performance

➢ There are gaps in the product range sold by the company. This lack of choice can
give a new competitor a foothold in the market.

3. Legal proceedings related to patents and pricing issues affect image

➢ Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors. One of the reason why the days inventory
‫اجمالي نفقات‬is high compare to its competitors is that AstraZeneca PLC is not very
good at demand forecasting thus end up keeping higher inventory both in-house
and in channel.

➢ The marketing of the products left a lot to be desired. Even though the product is a
success in terms of sale but its positioning and unique selling proposition is not
clearly defined which can lead to the attacks in this segment from the competitors.

➢ Not highly successful at integrating firms with different work culture. As mentioned
earlier even though AstraZeneca PLC is successful at integrating small companies it
has its share of failure to merge firms that have different work culture.

➢ Financial planning is not done properly and efficiently. The current asset ratio and
liquid asset ratios suggest that the company can use the cash more efficiently than
what it is doing at present.

➢ The profitability ratio and Net Contribution % of AstraZeneca PLC are below the
industry average.

➢ Limited success outside core business – Even though AstraZeneca PLC is one of
the leading organizations in its industry it has faced challenges in moving to other
product segments with its present culture.

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OPPORTUNITIES

➢ The new technology provides an opportunity to AstraZeneca PLC to practices

differentiated pricing strategy in the new market. It will enable the firm to maintain its
loyal customers with great service and lure new customers through other value
oriented propositions.

➢ Decreasing cost of transportation because of lower shipping prices can also bring
down the cost of AstraZeneca PLC’s products thus providing an opportunity to the
company - either to boost its profitability or pass on the benefits to the customers to
gain market share.

➢ New customers from online channel – Over the past few years the company has
invested vast sum of money into the online platform. This investment has opened
new sales channel for AstraZeneca PLC. In the next few years the company can
leverage this opportunity by knowing its customer better and serving their needs
using big data analytics.

➢ Economic uptick and increase in customer spending, after years of recession and
slow growth rate in the industry, is an opportunity for AstraZeneca PLC to capture
new customers and increase its market share.

➢ Stable free cash flow provides opportunities to invest in adjacent product segments.
With more cash in bank the company can invest in new technologies as well as in
new products segments. This should open a window of opportunity for AstraZeneca
PLC in other product categories.

➢ Opening up of new markets because of government agreement – the adoption of

new technology standard and government free trade agreement has provided
AstraZeneca PLC an opportunity to enter a new emerging market.

➢ Lower inflation rate‫ – معدل التضخم‬The low inflation rate bring more stability in the
market, enable credit at lower interest rate to the customers of AstraZeneca PLC.

➢ New trends in the consumer behavior can open up new market for the AstraZeneca
PLC . It provides a great opportunity for the organization to build new revenue
streams and diversify into new product categories too

➢ . Increasing importance of biosimiler market

➢ . Increasing global ageing population

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THREATS

➢ Growing strengths of local distributors also presents a threat in some markets as the
competition is paying higher margins to the local distributors.

➢ Intense competition – Stable profitability has increased the number of players in the
industry over last two years which has put downward pressure on not only
profitability but also on overall sales.

➢ No regular supply of innovative products – Over the years the company has
developed numerous products but those are often response to the development by
other players. Secondly the supply of new products is not regular thus leading to
high and low swings in the sales number over period of time.

➢ New technologies developed by the competitor or market disruptor could be a

serious threat to the industry in medium to long term future.

➢ The company can face lawsuits in various markets given - different laws and
continuous fluctuations regarding product standards in those markets.

➢ Rising pay level especially movements such as $15 an hour and increasing prices in
the China can lead to serious pressure on profitability of AstraZeneca PLC

➢ Shortage of skilled workforce in certain global market represents a threat to steady

growth of profits for AstraZeneca PLC in those markets.

➢ Rising raw material can pose a threat to the AstraZeneca PLC profitability.

➢ Seroquel their blockbuster drug is facing threat of copycat generic drugs

➢ Stringent drug development guidelines

➢ Competition coming up with effective drugs

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