Astrazeneca shares: Price analysis before buying or selling

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ISIN code: GB0009895292

Ticker: LON: AZN

Index or market: FTSE 100

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Elements to consider before selling or buying Astrazeneca shares

Analysis N°1

The development of this group's activities abroad, particularly in emerging markets, is undoubtedly one of the most important elements to take into account when analysing this action.

Analysis N°2

The innovations developed by the group are also key elements for the growth of this stock. In particular, we will monitor Astrazeneca's progress in the field of biosimulators, which is currently growing rapidly.

Analysis N°3

The ageing of the world population is also a growth factor for the group and its sales, as is the growth in demographics.

Analysis N°4

The introduction on the market of generic medicines that compete directly with some of Astrazeneca's expired patents will also have to be monitored and taken into account.

Analysis N°5

Regulations and legislation regarding the marketing of medicines worldwide also influence the activities of this group.

Analysis N°6

Finally, we will also keep a close eye on the competition in this sector of activity.

Analysis before buying or selling Astrazeneca shares

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General presentation of Astrazeneca

The Astrazeneca group was created in 1999 following the merger of the Swedish company Astra and the British company Zeneca. Today, this group is one of the leaders in the world in the domain of pharmaceutical industry and produces a large part of the medicines and medical treatments sold on the market. The activities of the pharmaceutical group Astrazeneca can be divided according to the medical segments covered by its products and the turnover generated by each.

The treatment of cardiovascular and metabolic diseases represents more than 35.3% of the group's turnover.
The treatment of respiratory diseases accounts for 20.7% of the company's overall turnover.
Oncology treatments represents 14.7% of the company's turnover.
Finally, 22% of the company’s turnover is generated by the treatments of inflammatory and autoimmune diseases, neurological diseases, gastrointestinal diseases and infectious diseases.
The remaining 7.3% comes from research and studies services done by Astrazeneca for other major groups.

Astrazeneca currently generates most of its turnover in America, since this market now accounts for 39.9% of its total sales. Continental Europe generates 24.3% of its total turnover with 8% only in the United Kingdom. Then comes the market of Africa, Asia and Australia for a total share of 27.8% of the total turnover.

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The major competitors of Astrazeneca

Let us now discover the competition of the Astrazeneca group with a presentation of its main opponents in its sector of activity and their specificities and important information.

Novartis

The Novartis group is a Swiss pharmaceutical group created in 1996 by the merger of Ciba Geigy and Sandoz. It specialises in the production of pharmaceuticals, generic drugs and eye care products.

Pfizer

The American pharmaceutical group Pfizer was founded in 1849 and is present in more than 150 countries around the world. It is one of the world leaders in its sector in terms of turnover and market capitalisation. The group employs more than 81,800 people worldwide and is also known for its numerous mergers with competing companies.

Roche

This Swiss company also specialises in the pharmaceutical sector, of which it is one of the main entities. The company has been active since 2004 in two distinct segments, pharmaceuticals and diagnostics, and is focused on individualised medicine. The group operates in more than 150 countries and employs more than 94,000 people.

Sanofi

The Sanofi group is a French transnational specialising in pharmaceutical activities and vaccines. The group has a product-based organisation of its activities following a structural reorganisation in 2015. In terms of turnover, the Sanofi group ranks third in this sector worldwide and slightly lower in terms of market capitalisation. Most of the Sanofi group's turnover is generated outside Europe and the group currently employs more than 100,000 people in around 100 countries. On the French market, Sanofi is currently the third largest market capitalisation and is more than 9.48% owned by the L'Oréal group.

Merck & Co Inc

The Merck and Co group is also a direct competitor of Astrazeneca. This American pharmaceutical company employs over 68,000 people worldwide and is one of the five largest pharmaceutical companies in the world. It is a former subsidiary of the Merck KGaA group, which has been independent since 1917 and is no longer linked to this group.

Johnson & Johnson

Finally, the Johnson & Johnson group is an American pharmaceutical company founded in 1886. It specialises in the production of pharmaceutical and medical equipment, hygiene products, cosmetics and also offers related services to consumers and health professionals. Johnson & Johnson has 250 subsidiaries and is present in 60 countries around the world with products marketed in 175 countries. The company is also included in the Dow Jones Industrial Average. Johnson & Johnson is also a Fortune 500 company with numerous brands of medicines and first aid supplies.

The major partners of Astrazeneca

Of course and in order to remain at the forefront of innovation in the areas of research and development of new therapeutic products, the company Astrazeneca must rely on serious partners and cleverly chosen. In the past, it has set up various alliances with other companies in identical or complementary sectors.

Adherium

In 2015, in particular, the Astrazeneca group teamed up with a New Zealand company, Adherium, to set up a collaboration around inhalation therapy for patients suffering from respiratory diseases. This new treatment will use the digital technologies created by Adherium.

Unicancer

In 2017, the Astrazeneca group also joined forces with the French group Unicancer, which specializes in the fight against cancer, to create a partnership aimed at conducting clinical research in order to put in place a national plan to fight against cancer. in Algeria. The two companies will first make an inventory on the ground before setting up a development program in the various centers of the country.

Merck

Also in 2017, Astrazeneca announced the establishment of a partnership with the American pharmaceutical group Merck in the field of oncology. This association aims to conduct research on the development of certain types of cancers with targeted clinical trials.

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The factors in favour of a rise in the Astrazeneca share price:

To be able to understand how the Astrazeneca share price could react over the medium or long term it is essential to understand how the growth of this company could progress or regress. To do this the best way is to compare the strengths and weaknesses of this company that actually reflect the advantages and disadvantages of this asset. The following are the factors that could assist you in seeing the situation more clearly.

We shall start this comparative analysis with a summary of the major advantages of the Astrazeneca Group:

Firstly, we should of course mention here the fact that Astrazeneca has been the centre of attention of investors for the last few months and also in 2020 due to its development of a Covid-19 vaccine. In fact, several hundred million doses of this vaccine have already been ordered by various different countries even before obtaining authorisation to be launched onto the market. These dramatic events facing populations and economies around the world have therefore proved advantageous for this company’s stock market share price which gained numerous points during 2020.
Still concerning the advantages offered by the Astrazeneca Group we note here the significant and reliable presence of this company on certain strategic markets including the emerging markets due to a well managed and effective expansion strategy. It should be remembered here that the Astrazeneca Group is currently active in over a hundred different countries and on all the continents. It actually employs over 60,000 people around the world.
One of the keys to success for Astrazeneca has undoubtedly been related to its high investment level in research and development. These significant and regular investments have enabled the company to remain at the cutting edge of innovation and continue its production of new products that respond to the market requirements. It should be remembered here that the group currently boasts over 11,000 dedicated R & D teams.
Another advantage of this group concerns certain products that are already available in this sector and generate more than one billion dollars revenue each. This is the case for around a dozen of this company’s products at present.
We should also underline the quality and diversity of this group’s product portfolio which notably includes cancer treatments, certain cardio-vascular treatments, treatments for certain gastro-intestinal problems, those for certain types of infections, as well as certain treatments related to neuroscience, inflammation and respiratory problems.
Still on the subject of the Astrazeneca Group’s strengths we also note the strong growth in recent years of the biosimilar market, a sector in which the group is particularly well positioned.
Finally, an increase in the aging of the global population could prove to promote an increase in a future strong and relatively stable demand in the coming years.

The factors in favour of a drop in the Astrazeneca share price:

It is clear that the factors in favour of the strong growth capabilities of the Astrazeneca group should not be analysed alone but should in fact be compared with the existing negative factors or weak points of this group that we shall now examine:

First and foremost it is important to remember the fact that the Astrazeneca Group has been affected by a shortage of some of its medicines and treatments in the past, notably relating to Cefotan. Although this problem is now in the past it significantly damaged the company, particularly its brand image.
The group is also subject to other weak points from the sales aspect as a number of medicines and treatments already on the market have patents that will soon expire. Due to this fact the company is directly threatened by the competition of generic medicines and could therefore lose parts of its market share in the coming future.
The regulations and strict rules emanating from the health authorities, notably related to the validity of tests and clinical trials and the granting of authorisations for the launch of products onto the market can also negatively impact the sales figures of the Astrazeneca Company and thereby cause heavy losses when significant investments have been required and the final candidate treatment has not been authorised for sale.
It is clear that the frequent judiciary problems experienced by Astrazeneca related to patent disagreements or pricing problems could also severely and negatively impact the company’s name and reputation.
Finally, concerning research and development, the group is subject to increasingly strong competition from biotechs, some of which are making their mark in the markets and so could take part of the market share from Astrazeneca thereby causing a reduction in this company’s turnover and profitability.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

How many Astrazeneca shares are currently outstanding on the market?

Currently, as of 30 July 2020, the number of Astrazeneca Group shares outstanding on the market is 1,312 million. These shares are traded on several financial markets, as the company benefits from a triple listing. Astrazeneca shares are listed on the London Stock Exchange, the Stockholm Stock Exchange and the New York Stock Exchange under the symbol AZN.

When was Astrazeneca founded?

Astrazeneca has been in existence since 6 April 1999. It was created at that time through the merger of two companies, Astra AB of Sweden and Zeneca PLC of the United Kingdom. Today, the company employs more than 70,600 people, mainly in emerging markets including China, Russia and Central America, Europe and the United States.

What currency is the Astrazeneca share price quoted in?

The Astrazeneca share is mainly quoted in US dollars. However, holders of shares in this London-listed company may receive their dividend in another currency including, of course, the pound sterling but also other world currencies. You should, however, pay attention to the exchange rate in respect of such dividends depending on the currency in which you wish to receive your dividends or the currency in which you are buying or selling securities.

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Analysis before buying or selling Astrazeneca shares