AstraZeneca strengthens global operations despite China challenges​

Leadership changes and China operations

AstraZeneca PLC is implementing significant strategic changes across its global operations, balancing challenges in China with expansion plans in the United States. The appointment of Iskra Reic as head of China operations follows the detention of former leader Leon Wang amid broader healthcare sector scrutiny. CEO Sir Pascal Soriot has addressed compliance issues involving WeChat usage by employees, leading to enhanced control measures.

These developments come at a crucial time for AstraZeneca's Chinese operations, though the company maintains its commitment to this key market. The pharmaceutical giant's swift response demonstrates its ability to navigate complex regulatory environments.

Pascal Soriot, chief executive officer of AstraZeneca

US expansion plans

AstraZeneca has announced a substantial $3.5 billion investment in US operations through 2026. This investment aims to create over 1,000 high-skilled jobs across its American facilities. The expansion reflects the company's confidence in the US market and its growth strategy. This move could help reduce dependency on any single market while strengthening its global presence.

Financial performance

Strong demand for cancer and rare-disease treatments has driven better-than-expected third-quarter (Q3) results. The company has raised its full-year sales outlook based on this performance. Share trading activity suggests investors are responding positively to these developments. The financial outlook remains robust despite operational challenges in some markets.

Board refreshment

The appointment of René Haas (Arm Holdings CEO) and Birgit Conix (Sonova CFO) as non-executive directors strengthens corporate governance. These appointments bring additional technology and financial expertise to the board. The timing aligns with AstraZeneca's broader strategic refresh and expansion plans. These changes suggest a focus on enhancing digital capabilities and financial oversight.

​AstraZeneca analyst ratings

TipRanks gives AstraZeneca a Smart Score of 10, outperform, with 9 ‘buy’ and 5 ‘hold’ analyst recommendations. According to LSEG Data & Analytics, 7 analysts rate AstraZeneca as a ‘strong buy’, 11 as a ‘buy’, and 8 as a ‘hold’, with a mean price target at 13,161 pence, 26% above current levels (as of 17/12/2024).

​TipRanks smart score

AstraZeneca technical analysis

The AstraZeneca share price dropped by 25% from its September peak to its November low at 9670 pence before regaining lost ground over the past few weeks. It hasn’t come as a surprise to technical analysts that the AstraZeneca share price found support where it did since the November trough was made in a key long-term technical support zone. It consists of the May 2022 to February 2024 lows and makes up significant support between 9778p and 9399p.

​AstraZeneca analyst ratings

As long as this support area underpins on a weekly chart closing basis, the AstraZeneca share price is deemed to be in a wide, multi-year sideways trading range with a longer-term bullish bias. The 200-week simple moving average (SMA) at 10,272p, together with the psychological 10,000 mark, may act as potential support regions in case of another setback being witnessed.

​AstraZeneca monthly chart

For the bulls to regain control, a rise and weekly chart close above the early December high at 10,804p would need to ensue.

If so, the July to October 2023 highs at 11,264p to 11,304p would be in focus, together with the 55-week SMA at 11,340p. A rise above the 55-week SMA at 11,340p may lead to the April 2023 high at 12,392p being back in the frame in the course of next year.

​AstraZeneca weekly chart