Emerging Business Models in the Pharmaceutical Industries ...

Introduction
Established in 1985, AstraZeneca plc is a
research-based pharmaceutical company
primarily engaged in providing effective
medicines to fight disease in the
cardiovascular, gastrointestinal,
neuroscience, oncology, respiratory, and
inflammation and infection areas.
The company has 31 manufacturing sites in
20 countries, and employs over 60,000
people worldwide. AstraZeneca has sales in
over 100 countries, with a strong presence in
European markets.
Within Europe, France is the source of the
highest revenues for the company.
Sales in 2003 totaled $18.8 billion, with an
operating profit of $4.1 billion. The company
spends over $14 million every working day on
research and development.
AstraZeneca
Revenues
The profit margin fell due to decline in global sales of Losec/ Prilosec,
Zestril and Nolvadex ($3 billion) following their patent expiries. However it
was partially offset with the performance of new and growth products in
their revitalised portfolio.
The operating profits were not up to the mark as a result of planned
investments in research and development, the cost of launching new
products, and transformation of the product portfolio.
20
15
10
5
0
Astra-Zeneca's Five Year Financial Record
(billion US$)
25%
1999 2000 2001 2002 2003
Source: Company’s Annual Reports
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 73
15%
5%
-5%
Revenues
Operating Profit
Profit Margin