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AstraZeneca updates its value-building strategy to shareholders

  • In a clear signal to Pfizer (PFE -1.5%) that it needs to dig quite a bit deeper into its pockets, AstraZeneca (AZN -0.7%) publishes an update to its growth strategy. It states that the company's transformation to growth is underway citing its new management team plus its growing and accelerating late-stage pipeline.
  • It provides long-term revenue targets for its five key growth platforms: Brilinta: $3.5B by 2023; Diabetes: $8B by 2023; Respiratory: $8B by 2023; Emerging markets: mid-to-high single digit growth; Japan: low single-digit growth.
  • New revenue targets: 2017 revenues in line with 2013's and $45B by 2023.
Comments (3)
  • Small Pharma Analyst
    , contributor
    Comments (560) | Send Message
     
    Giving revenue targets for 2023 is just plain silly. Impossible to predict how their pipeline will unfold over that length of time. It just underscores they will have no growth for at least 5 years and are in a very weak position to rebuff Pfizer.
    6 May 2014, 02:25 PM Reply Like
  • Illuminati Investments
    , contributor
    Comments (4929) | Send Message
     
    Yup, classic posturing to try to get Pfizer to sweeten the deal. Given that the buyout chatter has driven AZN up to one of the highest valuations amongst major drug companies and it has one of the steepest patent cliffs, as an AZN shareholder I would approve a buyout in a heartbeat rather than roll the dice on possible new drugs as an independent company.
    6 May 2014, 04:19 PM Reply Like
  • roybuckley
    , contributor
    Comments (29) | Send Message
     
    On some planet this might be good for shareholders, but it is not good for employees or customers of either company.
    6 May 2014, 04:26 PM Reply Like
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