Astrazeneca Share Discussion Threads

[jimarilo] 14/2/2022 15:05

Household name for murder !!!

[jimarilo] 14/2/2022 15:04

AZ are pure murdering scum .......manufacturers of poison ........FACT !!

[beckers2008] 14/2/2022 10:34

HL View/Comment published on the 10th Feb:

AstraZeneca's coronavirus vaccine has made it a household name worldwide, but the group's promise to sell the vaccine at cost ''during the pandemic'' means it's padded revenue but not profits. 2022 will pave a new road for the group's coronavirus medicines business--with vaccine sales waning and a monoclonal antibody treatment making up a larger proportion of sales, we can expect to see some of those dollars start to funnel through to the bottom line.

This in addition to the potential growth runway coming from the Alexion acquisition have given management the confidence to increase shareholder returns, but remember dividends are variable and not guaranteed.

Alexion brings rare disease treatments into the AZN fold, a fundamentally attractive area of the pharmaceutical market. The combination of Astra's massive distribution network and Alexion's specialized drugs should bring about a powerful windfall in the coming years.

Rare diseases are, by definition, uncommon. In the past spending millions, perhaps billions, on researching a drug to treat a few tens of thousands of patients worldwide didn't make financial sense. Instead attention focused on treatments for common diseases, like asthma, with patients stretching into the tens of millions. As a result, only around 5% of designated rare diseases have approved treatments.

More recently that attitude has shifted. While major diseases may have large markets, they also attract lots of competition. That means individual drugs companies can end up with a relatively small slice of a large pie. Competition in rare diseases is far lower - a drug company which develops a treatment for a previously unaddressed illness will likely end up serving the entire market and can probably attach a hefty price tag to boot. It's also unlikely a competitor will develop a more effective alternative, since competition is so much lower. Increased interest in the sector means the global rare disease market is forecasted to grow by a low double-digit percentage.

Breaking into this market didn't come cheap, though. The acquisition more than doubled Astra's debt pile and sent free cash into the red. But this pales in comparison to the potential growth the combination offers. This is particularly true when it comes to emerging markets. Alexion's been primarily selling to the US and Europe, but under Astra's wing a greater proportion can be sold further afield. This is of course dependent on regulatory approval, but as AZN already has footholds in these markets it should make the process more efficient.

Cash flow will be of utmost importance moving forward--debt now stands at more than 3 times underlying cash profits. With interest rates on the rise, we'd like to see that come down to more manageable levels. Shareholder returns are also marching higher, so the demands on cash are not insignificant. Any missteps in the Alexion integration, and the group will either have to saddle itself with more debt or trim the dividend.

Overall we think Astra is pretty well placed. It's too early to say whether the Alexion deal will deliver on its potential, but a strong core business and the promise of rising coronavirus treatment profits are encouraging. If all goes to plan the future is bright.

[philanderer] 13/2/2022 13:56

Beckers, thanks for the IC article.

[alphorn] 13/2/2022 10:03

Neither approved by Swissmedic who concluded that their data did not support the benefit/risk equation. AZN then (I believe) withdrew their submission.

[paulboz] 13/2/2022 08:59

Apologies if this is slightly off topic but did the AZN covid vaccine ever get approved for use in the US by the FDA? If not, was it due to AZN not really going for it ?TIA

[beckers2008] 11/2/2022 13:03

No problem RR, nice to share good news on AZ, which they thoroughly deserve.

'17 times UBS’s EPS estimates for 2022' that's good value especially with the increase in dividend, gives the market confidence. Well done AZ!

[riskonricky] 11/2/2022 12:52

Thanks for sharing Beckers. AZ "exceeded all expectations". That's right.

[beckers2008] 11/2/2022 12:50

Even DZ is getting onside!!!!

DZ Bank Lifts AstraZeneca To Hold From Sell, Boosts Fair Price
02/11/2022 | 12:45pm GMT

[beckers2008] 11/2/2022 12:41

Nice article in IC which I will now share because it is yesterday's news.

AstraZeneca reaps oncology rewards
The ongoing controversy surrounding the AstraZeneca/Oxford covid vaccine obscures the company’s real success
February 10, 2022
By Julian Hofmann

• Covid vaccine is irrelevant to AstraZeneca's business
• Oncology specialisation makes it a real Euro pharma player

It was a year of highs and lows for AstraZeneca (AZN) which is still with the controversy surrounding the Oxford Covid vaccine as the debate over the impact of the jab and political reactions to it during the pandemic rumbles on. However, investors should not forget that vaccines are not, and were never, a material part of AstraZeneca’s business and that its real value is as an innovative developer of high value oncology medicines in hard-to-treat cancers.

In this respect, the company has exceeded all expectations and with 2021 dominated by positive trial readouts for key products trastuzumab deruxetan (Enhertu) in breast cancer and olaparib (Lynparza) in prostate cancer, the high risk/reward strategy that chief executive Pascal Soriot initiated when he took the helm in mid-2009 looks validated. It is measure of how far and quickly the oncology programme has developed that if you look up how Lynparza was viewed by Astra’s previous management, it was listed prominently as a discontinued programme for breast cancer. More than a decade on and the medicine generated $2.3bn (£1.69bn) in annual sales in these results, a 32 per cent increase on 2020.

With the market still waiting on further data from Astra’s DESTINY-Breast04 trial for Enhertu, developed in partnership with Japanese company Daiichi Sankyo, the full-year results had to be merely in line with everyone’s expectations for the market to be satisfied and Astra did not disappoint. Apart from the trial results, the biggest corporate move of the year was the company’s purchase in July of US biotech Alexion for $41bn, funded by a combination of Astra shares and $8bn in new long-term debt. Investors should expect the company to incur integration costs until 2025, with one-time costs of $2.1bn.

The impact on the balance sheet overall was surprisingly benign, apart from the $8bn increase in goodwill and a doubling of intangible assets post-the acquisition. AstraZeneca seems to have managed to maintain shareholder equity while spending the vast stock of retained earnings that had built up under previous chief executive David Brennan. For example, in 2010, these topped $18bn, but barely $1.7bn in these results.

Despite its generally irritating use of “core” and “non-core̶1; earnings, AstraZeneca is clearly the pharma company of the moment, which is reflected in a forward price/earnings ratio of 17 times UBS’s EPS estimates for 2022. That places Astra at the top table of European pharma valuations, but based on its operational performance, that rating looks eminently justified. Buy.

[woodyjmw] 10/2/2022 15:41

Nice reaction as well. First dividend increase in 10 years, mid to high 20s percentage rise in core earnings expected for 2022, fall in Covid vaccine sales offset by increasing antibody sales. Core earnings per share $1.67 against predicted of $0.73 for the fourth quarter. Looks good.

[philanderer] 10/2/2022 10:48

Yes, continue holding this fella ;-)

[bluemango] 10/2/2022 07:58

Great results - and finally an increase in dividend to 2.90 USD from 2.80 previously.

[bluemango] 09/2/2022 08:54

Results tomorrow

[jimarilo] 06/2/2022 13:29

OTTAWA
Freedom Truckers Convoy 2022 Live Feb 5

Party ! Party ! watched this live last night .......fabulous to see

This will make a difference, even Manchester had their own mini convoy lol, the word is spreading

[bluemango] 04/2/2022 20:26

Final results due next week, Thurs 10th.

Anyone think there's grounds for saying we'll finally see an increase in dividend after many years unchanged?

Last increase was in 2012.

[zaxarobal] 03/2/2022 20:49

I heard rumours on the street that Hedge funds are slowly starting to place short positions on Pfizer and Moderna.

[tday] 03/2/2022 15:13

I must be out of date. I thought Emily was a her.

[beckers2008] 02/2/2022 13:19

Just catching up again!

ASTRAZENECA : Barclays remains its Buy rating
01/31/2022 | 12:34pm GMT

Emily Field from Barclays retains his positive opinion on the stock with a Buy rating. The target price remains unchanged at GBX 11500.

[prokartace] 01/2/2022 14:59

Its already been on the record that covid vaccine will offer no profit for the companies involved