Morningstar Rating

Stock Research and Analysis

by Damien Conover, CFA

Bulls Say

The company is expanding its biologic presence in pipeline products. The biologics tend to carry higher pricing power and may hold off generic competition longer than typical drugs.
New management is focusing the pipeline toward unmet medical need, which should increase the odds of success and the pricing power of the pipeline.
While AstraZeneca doesn't have the largest presence in emerging markets, the company is growing in these territories, which should help offset patent losses in developed markets. Read more 

Bears Say

During the next three years, the company's top two drugs, Nexium and Crestor, will lose patent protection, which creates big shoes to fill.
The products losing exclusivity over the next three years carry very strong gross margins, which will cause an amplified impact on Astra's bottom line.
U.S. doctors tend to use high-dose aspirin for cardiovascular patients, so the upside for recently launched cardiovascular drug Brilinta could be curbed as trials showed only limited benefit for the drug when used with high-dose aspirin. Read more 

Management

Following an abrupt retirement announcement by CEO David Brennan when the company reported disappointing first-quarter 2012 results, Pascal Soriot was appointed as CEO in mid-2012. We believe the poor 2012 results, combined with an uneven record, led   Read more 

Profile

A merger between Astra of Sweden and Zeneca Group of the United Kingdom formed AstraZeneca in 1999. The company sells branded pharmaceutical products across several major   Read more 

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