Morningstar Rating

Stock Research and Analysis

by Damien Conover, CFA

Bulls Say

The company is expanding its oncology presence with several important pipeline products. In particular, the company's PD-L1 drug holds major blockbuster potential in lung cancer.
New management is quickly 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 significantly 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, creating a major headwind for growth.
The products losing exclusivity over the next three years carry very strong gross margins, which will cause an amplified impact on Astra's earnings.
Astra will likely be third or fourth to the market with its important PD-L1 drug for lung cancer, which may make market penetration difficult. 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 drugs across several major therapeutic classes,  Read more 

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