AstraZeneca Plc’s AZN Chief Executive Pascal Soriot says the company achieved a significant milestone by reaching a sales target of $45 billion by 2023, a goal set a decade ago amid pressure from U.S. rival Pfizer Inc PFE.
In November 2013, AstraZeneca received an initial contact on Pfizer’s behalf, proposing that the two companies discuss a combination. AstraZeneca said it was not appropriate to engage in discussions with Pfizer.
Initially facing challenges with revenues at $26 billion and patent expiries, Soriot celebrated the achievement amidst skepticism.
However, despite hitting this milestone, Soriot faces the challenge of convincing investors that AstraZeneca’s best days are not behind it.
Over the past year, the company’s shares have remained stagnant, partly due to the excitement surrounding weight loss drugs, where AstraZeneca lags behind leaders like Eli Lilly And Co LLY and Novo Nordisk A/S NVO.
Investor skepticism arises regarding AstraZeneca’s ability to maintain momentum in the coming years, the Financial Times noted.
The company’s transformation under Soriot’s leadership serves as a model for others in the sector, emphasizing the importance of a diversified portfolio and strategic focus on cutting-edge scientific areas.
Soriot’s strategy involved divesting non-core assets to invest heavily in research and development while pursuing acquisitions.
Despite setbacks and criticisms, AstraZeneca witnessed five years of earnings growth from 2018, boasting 13 blockbusters, including Farxiga and Tagrisso.
With patents on key drugs expiring soon, AstraZeneca is embarking on its next decade from a different position, armed with 178 prospects in various stages of development.
Recent acquisitions, such as the $2.4 billion deal for Canadian biotech Fusion Pharmaceuticals Inc FUSN, underscore its commitment to developing targeted cancer treatments.
Once a sector darling with a premium valuation, AstraZeneca trades closer to the sector average. Setting another long-term revenue target as Soriot prepares for an investor day in May could bolster investor confidence and clarify the company’s prospects.
Price Action: AZN shares are down 0.65% at $66.81 on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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