AZ predicts strong growth ahead of Pfizer deadline
pharmafile | November 19, 2014 | News story | Sales and Marketing | AZD9291, AstraZeneca, Pfizer, Soriot, definiens
AstraZeneca has announced that it expects to deliver revenues of over $45 billion by 2023 as it makes its final defences against a potential Pfizer acquisition bid next week.
In a statement AZ highlights the recent success of its late-stage pipeline and oncology portfolio as key drivers behind this prediction.
Pascal Soriot, chief executive of AstraZeneca, says: “I am delighted with the progress we are making on our strategy. We have rapidly strengthened and accelerated our pipeline, established strong momentum behind our growth platforms, and are creating significant value for patients and shareholders.
The UK firm says it sees potential for 14-16 submissions and 8-10 drug approvals from its late-stage pipeline in 2015-2016.
Meanwhile, its oncology business looks set to become AZ’s sixth growth platform with the potential to deliver a quarter of the company’s sales by 2023, boosted by several potential submissions over the next few years it says.
This includes a US submission for AZD9291 for non-small cell lung cancer expected in 2015 and an expansion of its ‘industry-leading’ immuno-oncology portfolio.
The firm says that 13 immuno-oncology combination trials are currently underway and another 16 are planned, while the recent acquisition of research software company Definiens will help to accelerate further clinical programmes through more precise biomarker testing.
AZ adds: “As we set out in March 2013, AstraZeneca’s strategy of returning to growth focusses on building key growth platforms, accelerating growth through business development and transforming the business shape through specialty care and biologics.
“Since then, we have made strong progress against these priorities by maximising the potential of the assets in our hands today, leveraging our global scale, and investing in core therapeutic growth areas as well as key geographies.”
The firm also says its other growth platforms that comprise diabetes, respiratory, emerging markets, Japan, and heart drug Brilinta (ticagrelor) – which is marketed as Brilique in the EU – now account for more than half of its global revenues.
Fending off Pfizer
This posturing is a clear sign that AstraZeneca wants to prove its potential as an independent company in the face of acquisition bids from Pfizer.
AZ has rejected every offer so far from the US firm, the latest one being worth £69 billion ($118 billion), insisting that it can survive on its own.
Under UK merger laws, Pfizer is barred from making another bid until 26 November – only a week from the release of this revenue forecast.
It is unclear if Pfizer will even attempt another bid, however – recent US law changes have reduced the benefits of such ‘tax inversion’ deals, where American firms buy overseas companies in order to move their legal address abroad and pay lower taxes. This may have significantly reduced the potential value of the deal for Pfizer.
George Underwood
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