Astrazeneca ,a long pipeline of drugs with lots of debt

Accuracy score :
97%

AstraZeneca PLC ADR  AZN

Summary (from latest annual report and quarterly report 2016) 

Total equity  : 14.74 billion USD

Market Cap is 72.5 billion USD ( last price of the stock is 28.64 USD)

AstraZeneca PLC is a biopharmaceutical company. It is engaged in the discovery and development of new products, which are then manufactured, marketed and sold

Equity of total company decreased from 19.62 billion USD in 2014 to 14.74 billion in 2016 

Company has 3.42 billion USD in cash on account (from latest quarterly report  2016 year)

Total equity – cash on account = 14.74 billion USD – 3.42 billion USD = 11.32 billion USD

In 2016 company has 14.14 billion USD long-term debt, short – term debt was 2.16 billion USD                                                                                                                                                            (In 2014 company had 2.44 billion USD short-term debt , long-term debt was 8.39 billion USD)

In latest quarterly report - total equity decreased to 14.74 billion  USD from 19.62 billion USD in 2014, total debt was 16.3 billion USD in 2016)

Company's revenue decreased in 2015 to 24.7 billion USD from 26.09 billion in 2014 

Net income in 2015 was 2.82 billion USD, Net income in 2014 was 1.23 billion USD

In 2016 company paid 3.48 billion usd dividend to its shareholders


 AstraZeneca PLC ADR  Subsidiaries  AZN

 

AstraZeneca plc is a British-Swedish multinational pharmaceutical and biologics company headquartered in London, United Kingdom. AstraZeneca has a portfolio of products for major disease areas including cancer, cardiovascular, gastrointestinal, infection, neuroscience, respiratory and inflammation. The company was founded in 1999 through the merger of the Sweden-based Astra AB and the UK-based Zeneca Group.

AstraZeneca develops, manufactures and sells pharmaceutical and biotechnology products to treat disorders in the gastrointestinal, cardiac and vascular, neurological and psychiatric, infection, respiratory, pathological inflammation and oncology areas. The company employs over 11,000 people at research facilities in the United Kingdom, United States, Sweden, France, Canada, India, China, Brazil and Japan. The company's largest single research and development site is at Alderley Park, a large country estate in Cheshire, England. Around 4,500 staff are based at the site. The company has a major research and development presence in Sweden, with approximately 4,000 staff employed at research facilities in Mölndal and Södertälje.

On 19 May 2014 AstraZeneca rejected a "final offer" from Pfizer of £55 per share, which valued the company at £69.4 billion (117 billion USD at that time)

 

AZN standalone subsidiaries and acquisitions :

In 2005, the company acquired KuDOS Pharmaceuticals, a UK biotech company, for £120m ( 175 million USD)

In 2006, following a collaborative relationship begun in 2004, AstraZeneca acquired Cambridge Antibody Technology for £702 million (1.02 billion USD)

In February 2007, AstraZeneca agreed to buy Arrow Therapeutics, a company focused on the discovery and development of anti-viral therapies, for 150 million USD

In 2007 AstraZeneca acquired American company MedImmune for about 15.2 billion USD to gain flu vaccines and an anti-viral treatment for infants, AstraZeneca subsequently consolidated all of its biologics operations into a dedicated biologics division called MedImmune

In 2010, AstraZeneca acquired Novexel Corp for 400 million USD, an antiobiotics discovery company formed in 2004 as a spin-off of the Sanofi-Aventis anti-infectives division. Astra acquired the experimental antibiotic NXL-104 (CEF104) (CAZ-AVI) through this acquisition

In 2011, AstraZeneca acquired Guangdong BeiKang Pharmaceutical Company for 500 million USD, a Chinese generics business

In April 2012, AstraZeneca acquired Ardea Biosciences, another biotechnology company, for 1.26 billion USD

In June 2012, AstraZeneca and Bristol-Myers Squibb announced a two-stage deal for the joint acquisition of the biotechnology company Amylin Pharmaceuticals. It was agreed that Bristol-Myers Squibb would acquire Amylin for 5.3 billion USD in cash and the assumption of 1.7 billion in debt, with AstraZeneca then paying 3.4 billion USD in cash to Bristol-Myers Squibb, and Amylin being folded into an existing diabetes joint-venture between AstraZeneca and Bristol-Myers Squibb

In 2013 AstraZeneca invested 500 million USD in the construction of a new research and development facility in Cambridge and the concentration of R&D in three locations: Cambridge, Gaithersburg, Maryland (location of MedImmune, where it will work on biotech drugs), and Mölndal in Sweden, for research on traditional chemical drugs

In October 2013, AstraZeneca announced it would acquire biotech oncology company Spirogen for around 440 million USD

In 2013 AstraZeneca acguired Pearl Therapeutics for 1.15 billion USD

In 2013 AstraZeneca acquired Omthera Pharmaceuticals for 443 million USD

In July 2014 the company entered into a deal with Almirall to acquire its subsidiary Almirall Sofotec and its lung treatments including the COPD drug, Eklira. The 2.1 billion USD deal included an allocation of 1.2 billion USD for development in the respiratory franchise, one of AstraZeneca's three target therapeutic areas announced the year before

In November 2014 the companys biologics R&D operation, MedImmune, agreed to acquire Definiens for more than 150 million USD

In February 2015, the company announced would acquire the US and Canadian rights to Actavis' branded respiratory drug business for an initial sum of 600 million USD

In August 2015, the company announced it has acquired the global rights to develop and commercialise Heptares Therapeutics drug candidate HTL-1071, which focuses on blocking the adenosine A2A receptor, in a deal worth up to 510 million USD

In the same month the company Medimmune subsidiary acquire exclusive rights to Inovio Pharmaceuticals INO-3112 immunotherapy, currently in Phase I/II, under an agreement which could net more than 727.5 million USD

On the 6th of November it was reported that AstraZeneca acquired ZS Pharma for 2.7 billion USD

In December the company announced its intention to acquire the respiratory portfolio of Takeda Pharmaceutical - namely Alvesco and Omnaris - for 575 million USD

In 2015 the company announced it had taken a 55% majority stake in Acerta for 4 billion USD. As part of the transaction the company will gain commercial rights to Acertas irreversible oral Bruton's tyrosine kinase inhibitor, acalabrutinib (ACP-196), which is currently in Phase III development for B-cell blood cancers and in Phase I or II clinical trials in solid tumours

 

Total = 35.97 billion usd

 

Collaborations

 

In February 2012, AstraZeneca and Amgen announced collaboration on treatments for inflammatory diseases

In August 2014 the company announced it had entered into a three-year collaboration with Mitsubishi Tanabe Pharma on diabetic nephropathy

In September 2014 the company would join forces with Eli Lilly in developing and commercialising its candidate BACE inhibitor – AZD3292 – used for the treament of Alzheimers. The deal could yield up to $500 million for the company

In 2015 the company announced it would co commercialise naloxegol along with Daiichi Sankyo in a deal worth up to $825 million

Towards the end of April the company announced a number of collaborations worth an estimated $1.8 billion; firstly, to develop and commercialise MEDI4736, with Celgene, for use against non-Hodgkin’s lymphoma, myelodysplastic syndromes, and multiple myeloma with Astra Zeneca receiving $450 million. The second of two-deals is an agreement to study a combination treatment of MEDI4736 and Innate Pharma’s Phase II anti-NKG2A antibody IPH2201 for up to $1.275 billion

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 16.3 billion usd, company has 3.42 billion USD in cash on account, ROE is around 18 %).