AstraZeneca sets out its value stall, projecting annual revenues of $45 billion by 2023

In a bid to explain its rejection of US pharma giant Pfizer’s (NYSE: PFE) increased takeover bid for the Anglo-Swedish drug major, the board of AstraZeneca (LSE: ANZ) today provided an update on the continued progress in executing its strategy, which centers on achieving scientific leadership, strengthening its growth platforms and returning to growth.

Last Friday, AstraZeneca turned down Pfizer’s third approach, with an increased offer of £50 a share (for a transaction value of £63 billion, or around $106 billion), which chairman Leif Johansson and chief executive Pascal Soriot said substantially undervalues the UK-headquartered company (The Pharma Letter May 2).

In addition, the company provided new, long-term, financial targets which highlight the significant potential for shareholder value creation. From 2017 to 2023 AstraZeneca is targeting strong and consistent revenue growth leading to annual revenues of greater than $45 billion by 2023. Operating leverage is expected to result in core earnings growth in excess of revenue growth during this period (see more details below).