Strategy, objectives and 2009 performance
- Strengthen the
pipeline - Grow the
business - Reshape the
business - Promote a culture of
responsibility and accountability
To be one of the fastest and most productive companies in the industry through continuous improvement in our in-house R&D. Seek leading science outside AstraZeneca to broaden our research base and further strengthen our pipeline of new products
Initiatives
Accessing the best potential innovative medicines to meet unmet patient need through
- small molecule and biologics R&D
- externalisation
Embedding culture of continuous improvement through
- leading-edge science
- collaborations
- business efficiency
Objective for three years to end 2010
Deliver two new product launches on average per year from 2010
In order to achieve the above ensure we have 10 or more products in Phase III development or registration
Achieve a median composite eight-year product development cycle
Measure
Regulatory approvals
Projects entering development
Value-creating collaborations and business development activities
Major regulatory submissions
Development cycle times for small molecule and biologics/vaccines
2009 performance summary
Onglyza™ approved in 36 countries; Iressa approved in the EU; H1N1 influenza vaccine approved in the US. See Therapy Area Review
29 projects entering development. See Strengthening the pipeline section
Major late-stage in-licensing deals signed with Targacept, Forest and Nektar Agreed to acquire Novexel. See Working with others section
Submissions made for Brilinta, Certriad, Vimovo and Onglyza™/metformin; Zactima submission withdrawn H1N1 influenza vaccine approved in the US. See Therapy Area Review
On track to deliver 2010 targets. See Improving productivity section
To maintain our position among the industry leaders through a continued focus on driving commercial excellence
Initiatives
Building on leadership positions in existing markets
Expanding presence in important emerging markets
Driving high standards of sales force effectiveness, marketing excellence and customer support
Developing our brands to maximise patient benefit and commercial potential
Objective for three years to end 2010
Deliver sales growth in line with market growth to provide a return on our investment
Profitably launch in-licensed and existing projects
Securing new external commercial collaborations
Measure
Deliver targeted sales and contribution growth (at CER)
Successful life-cycle project
Successful launches
Commercial collaborations
2009 performance summary
Global sales +7% at CER. See 2009 Results of operations section
Additional approvals in the US for Seroquel and Seroquel XR; presented results of Crestor JUPITER trials and regulatory submissions made in the US and the EU. See Therapy Area Review
Onglyza™ launched in the US and the EU; Iressa launched in the EU; Symbicort approved in Japan and launched in January 2010. See Therapy Area Review
Four major co-promotion collaborations signed (Abbott, Astellas, UCB and Salix). See Working with others section
To create an organisation with the flexibility and financial strength to adapt quickly and effectively within a challenging and rapidly changing business environment
Initiatives
Implementing and expanding restructuring programme
Operations' asset and sourcing strategy
Delivering continuous improvement across R&D through
- smarter working
- business process outsourcing
G&A strategy
Marketing, sales and commercial strategies
- Western Europe and Emerging Markets resource optimisation plans
- North America - customer-driven interactions
Procurement strategy
Objective for three years to end 2010
Annual benefits of $2.1 billion from restructuring
Maintain margins
Improve R&D unit costs by 15%
Achieve planned improvement in selling, general and administrative (SG&A) costs
Procurement savings
Measure
Cost savings
Gross margin
Operating profit margin
Unit cost metrics
SG&A cost growth rates
Cost savings
2009 performance summary
Annualised benefits of $1.6 billion in 2009. See Strategy and Performance section
Target exceeded: core gross margin of 83%. See 2009 Results of operations section
Core operating profit margin of 41.5%. See 2009 Results of operations section
Progress towards target. See Improving productivity section
Core SG&A growth of 5%. See 2009 Results of operations section
Delivered savings of $555 million against a target of $500 million
To create an organisation that is recognised not only for the skills, experience and quality of its people, but also for the integrity with which it conducts its business
Initiatives
Maintain/improve levels of employee engagement
Strengthening leadership development frameworks
Integrating responsible business considerations into everyday business thinking and decision-making
Objective for three years to end 2010
Upper quartile industry ranking for employee engagement
Achieve step change in leadership and management capability
Ensure that a culture of responsible business, including compliance, is embedded across all our activities
Measure
Levels of employee engagement as measured by our global employee survey (FOCUS)
Improve senior leadership clarity of direction as measured by our FOCUS survey
Number of confirmed breaches of external sales and marketing regulations or codes
Greenhouse gas emissions1
Waste production1, 2
Rate of accidents with serious injury1
Rate of occupational illness1
Ranking in Dow Jones Sustainability Indexes
2009 performance summary
86% of our employees completed the FOCUS survey, and employee engagement improved by 2 percentage points from 2008. This is above the industry average. See Engagement and dialogue section
2009 score improved by 3 percentage points over 2008 to 72% favourable. This follows significant efforts to improve the quality and effectiveness of senior leaders' communication to the organisation. See Engagement and dialogue section
24 confirmed breaches of external sales and marketing regulations or codes. See Sales and marketing ethics section
9% reduction in CO2 emissions. See Climate change section
8% reduction in total waste production. See Waste management section
2% reduction in accidents with serious injury. See Safety, health and wellbeing section
32% increase in cases of occupational illness. See Safety, health and wellbeing section
Positioned in the top 6% in the sector in the Dow Jones World and STOXX (European) Indexes
- 1
- Data exclude MedImmune.
- 2
- We have replaced our previous ozone depleting potential (ODP) KPI with waste production, as we believe it is now a more meaningful environmental sustainability indicator for AstraZeneca. ODP data continue to be published on our website, astrazeneca.com/responsibility.
