Please register and get access to full articles.
Welcome to our blog – a place to discuss and exchange thoughts and ideas about iX-7 Asset Management SA, the stock markets and all matters relating to wealth management.
AstraZeneca PLC (Ticker: AZN.L / AZN) is a British-Swedish multinational pharmaceutical and biotechnology company, and one of the largest and most innovative players in the global healthcare sector. It’s known for its strong R&D pipeline, a solid portfolio of oncology, cardiovascular, respiratory, and rare disease drugs, and its strategic push into biologics and gene therapy.
Headquarters: Cambridge, UK
Founded: 1999 (merger of Sweden's Astra AB and UK's Zeneca Group)
Industry: Pharmaceuticals/Biotechnology
Employees: ~85,000
Business Model: Discover, develop, manufacture, and commercialize prescription medicines.
Oncology (largest segment)
Key products: Tagrisso, Imfinzi, Enhertu, Calquence
Fast-growing and high-margin portfolio.
Cardiovascular, Renal & Metabolism (CVRM)
Farxiga, Brilinta—drugs with broad indications and expanding clinical support.
Rare Diseases (via Alexion acquisition, 2021)
Complementing the core business with high-margin niche therapies.
Respiratory & Immunology
Symbicort, Fasenra, and expanding asthma/autoimmune offerings.
Revenue: ~$48–50 billion (2024 estimate), with consistent YoY growth.
Operating margin: ~30% (strong, though below some Big Pharma peers).
Dividend yield: ~2.5% (stable, investor-friendly policy)
R&D spend: ~$9 billion annually – reflects heavy investment in future pipeline.
Debt: Moderate, post-Alexion, but manageable given cash flow strength.
Blockbuster Drugs: Tagrisso and Farxiga remain multi-billion revenue drivers.
Pipeline Strength: Over 180 projects in development across multiple late-stage trials.
Biologics and mRNA: Expansion into next-gen platforms.
Emerging Markets Growth: China and Latin America provide increasing revenue share.
Rare Diseases: High-margin and defensible niche after Alexion integration.
Patent Expirations: Generic risk from 2026–2030 (especially Tagrisso).
R&D Execution Risk: Pipeline success is critical; failures can be costly.
Regulatory/Political Risk: Especially around drug pricing in the U.S.
Currency Headwinds: GBP-USD/EUR fluctuations affect earnings.
Post-COVID Adjustment: Growth rates are normalizing post-COVID vaccine boost.
BUY (Core long-term holding)
AstraZeneca is a high-quality, innovation-driven pharmaceutical company with:
a deep pipeline,
diversified revenue streams,
strong presence in growth areas like oncology, rare diseases, and biologics,
and a commitment to sustainable dividend growth.
It offers a balanced profile of defensive stability + growth potential, making it attractive for both income and growth investors. It's less volatile than pure biotech plays and more innovative than traditional pharma giants.
Knowledge is power.