AstraZeneca’s ING Franchise Saw Lower Revenues in 2014



The ING franchise

The infection, neuroscience, and gastrointestinal disease (or ING) segment is AstraZeneca’s (AZN) second largest franchise by revenue. For 2014, the ING franchise generated nearly $8.2 billion, a 8.9% decrease as compared to $9.0 billion in 2013.

AstraZeneca groups infection, neuroscience, and gastrointestinal diseases into a single therapeutic area to help support existing medicines, develop and commercialize new therapies, prioritize resources, and enable effective and efficient investment in order to maximize value for both patients and shareholders.

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Strategic priorities

AstraZeneca’s ING segment is focused on respiratory viruses and serious bacterial infections in its infection subsegment. In neuroscience, the company is focused on new medicines for Alzheimer’s and Parkinson’s diseases and pain control. For gastrointestinal, the company is focused on development and improvement of inflammatory bowel disease and acid-related disease.

BACE partnership

AstraZeneca signed an agreement in September 2014 with Eli Lilly and Co. (LLY) for joint development and commercialization of the oral beta secretase cleaving enzyme (or BACE) inhibitor, which is a potential treatment for Alzheimer’s disease. The company will gain $500 million in development and regulatory milestone payments from Eli Lilly. Eli Lilly will lead clinical development, which will help AZN leverage Eli Lilly’s Alzheimer’s expertise and focus on developing other therapies. Also, AZN will be responsible for manufacturing.

Major competitors for AstraZeneca’s ING franchise include Pfizer (PFE), Salix Pharmaceuticals (SLXP), and Synergy Pharmaceuticals (SGYP). Pfizer (PFE) forms about 7.80% of the total assets of the Health Care Select Sector SPDR ETF (XLV).


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