2024-11-12 16:45:00
AstraZeneca continues its growth ambition. Announced to investors last May, the laboratory’s new strategic plan aims to reach $80 billion in revenue by 2030. To achieve this, the laboratory is counting in particular on the development of its oncology and rare diseases portfolio.
To support this trajectory, the Swedish-British giant announced an investment of $2 billion, entirely in the United States, bringing its total investment to $3.5 billion, with the aim of expanding its R&D and manufacturing capabilities. “by the end of 2026.” By expanding our footprint, we aim to enhance the development of cutting-edge therapies and support U.S. leadership in healthcare innovation », justified Pascal Soriot, general director of AstraZeneca.
The United States represents the laboratory’s largest market, responsible for 44% of its turnover. In detail, AstraZeneca intends to distribute this massive investment to the four corners of the country. In particular, it plans to strengthen its manufacturing capacities “ on the West and East Coasts, for cell therapies, and in Maryland, for next-generation biologics », while production at a site in Texas will also be intensified.
Furthermore, part of the laboratory envelope concerns the construction, announced in April 2022, of an R&D center in Kendall Square, Cambridge’s innovation district. The overall investment, which “ reflects the attractiveness of the business environment as well as the quality of talent and innovation capabilities in the United States » according to Pascal Soriot, should lead to the creation of more than a thousand new highly qualified jobs.
These new projects, aimed at expanding AstraZeneca’s design and production capabilities, are not the first launched by the laboratory. Recently, the Swedish-British group devoted $135 million to the expansion of its Swedish site, specializing in the production of biological medicines. In Asia, following the announcement of its new growth plan for 2030, AstraZeneca also revealed its intention to invest $1.5 billion in a factory dedicated to the manufacture of antibody-drug conjugates (ADC) in Singapore. . Enough to support the production of Enhertu, its flagship ADC developed with Daiichi-Sankyo. The treatment earned AstraZeneca $1.4 billion in the last quarter, an increase of 60%. A result which corresponds to the good growth recorded by the laboratory.
An upward revision of its 2024 forecasts
After the publication of solid results for the third half, and for the second time in less than four months, the group has raised its revenue and earnings per share forecasts for the year 2024. The laboratory, which recorded a revenue of $46 billion in 2023, now expects revenue and earnings per share to rise 17% to 19%, up from a previous forecast of 14% to 16%.
Growth attributed in particular to strong demand for its oncological treatments. And which should continue to accelerate thanks to the approvals that AstraZeneca has increased this year. Its blockbuster Tagrisso, the laboratory’s second best seller, which has already recorded nearly 5 billion in sales for 2024, has been approved by the FDA against unresectable non-small cell lung cancer. The drug Imfinzi has also seen its indications expanded, with new approval from the FDA and EMA against advanced forms of endometrial cancer. Promising progress which announces very positive future annual results for AstraZeneca.
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**Interview with Dr. Emily Carter, Sustainability Expert and Environmental Policy Analyst**
**Interviewer**: Thank you for joining us today, Dr. Carter. AstraZeneca recently announced a $400 million investment in its AZ Forest programme, aiming to plant 200 million trees by 2030. What do you think motivated this significant investment?
**Dr. Carter**: Thank you for having me. AstraZeneca’s commitment is quite significant and speaks to a growing recognition within the corporate sector about the importance of sustainability. It’s increasingly clear that companies are not just focusing on profits but also on their environmental impact and how they can contribute positively to the planet. This investment likely aligns with their broader corporate responsibility goals and acknowledges the role of reforestation in climate action and biodiversity.
**Interviewer**: AstraZeneca aims to combine its reforestation efforts with public health benefits. How do you see these two areas intersecting?
**Dr. Carter**: That’s a crucial point. Healthy ecosystems are vital for public health. Tree planting and reforestation can improve air quality, reduce heat, and even impact mental wellbeing. By investing in these areas, AstraZeneca not only contributes to climate action but also addresses factors that can lead to improved health outcomes. There’s a growing body of research that links environmental health with public health, making this a strategic move on their part.
**Interviewer**: The investment is part of a larger strategic plan that also includes a focus on oncology and rare diseases. How do you think sustainability initiatives like this can coexist with major pharmaceutical developments?
**Dr. Carter**: They must coexist. The pharmaceutical industry has a unique opportunity to lead both in healthcare innovations and environmental sustainability. By integrating these sustainability initiatives, AstraZeneca can build a brand that is not only known for its medical advancements but also for its commitment to global wellbeing. This dual approach can improve their corporate image, especially among consumers and investors who prioritize sustainability.
**Interviewer**: AstraZeneca’s broader strategy aims for $80 billion in revenue by 2030. How do investments in environmental initiatives impact financial performance in the long run?
**Dr. Carter**: While the upfront costs can be considerable, studies have shown that sustainable practices often lead to long-term savings and efficiencies. Companies that prioritize sustainability tend to have better risk management, enhanced innovation, and improved brand loyalty—all factors that can positively influence financial performance. Investors and consumers are increasingly favoring companies with strong sustainability records, which can translate into better market performance.
**Interviewer**: What do you think will be the challenges AstraZeneca may face in executing this ambitious environmental initiative?
**Dr. Carter**: Implementation is often the toughest part. AstraZeneca will need to ensure that their projects are not only effective but also easily monitored for success. They must engage with local communities and stakeholders to address any concerns and minimize risks. Furthermore, coordinating such a large-scale operation while balancing their core pharmaceutical projects could pose logistical challenges. Nonetheless, if managed well, the benefits can far outweigh the hurdles.
**Interviewer**: Thank you, Dr. Carter, for your insights on this important topic. It seems clear that the future of corporate responsibility is becoming increasingly intertwined with environmental sustainability.
**Dr. Carter**: Absolutely! Thank you for having me. It’s an exciting time to see how companies like AstraZeneca are stepping up to make a difference.
