AstraZeneca is a global biopharmaceutical company. AstraZeneca discovers, develops and commercializes prescription medicines for six areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation.
AstraZeneca boss sees progress despite profits slide
AstraZeneca (NYSE:AZN) (LON:AZN) is making "real progress" its boss said, despite generic drugs taking a chunk out of second quarter revenue and profits tumbling.
Chief executive Pascal Soriot said the late-stage drug pipeline is growing and added that the impact on revenue from the loss of exclusivity for key brands had been anticipated.
Losing protection on Atacand, Nexium and Seroquel IR accounted for US$500mln in lost revenues in the quarter to June with European sales hit especially hard and dropping by 13%. Cholesterol lowering treatment Crestor is also facing increased competition.
The five areas identified as growth markets by Astra, comprising emerging Markets, Japan, Brilinta and diabetes and respiratory products, helped to offset some of this and boosted revenues by US$400mln.
Revenues overall fell by 6% to US$6.23bn while pre-tax profits tumbled 38% to $1.09bn. Profits were 10% lower in the second quarter in the core businesses.
Over the first half, sales were down by 10% and profits 37% lower.
Soriot said: “Despite the fostamatinib [rheumatoid arthritis] disappointment, the late-stage pipeline in our core therapy areas is growing, and has been further strengthened with the acquisitions of Omthera Pharmaceuticals and Pearl Therapeutics and the recently announced collaboration with FibroGen.“
Astra left its forecasts for a mid-to-high single digit decline in revenues this year unchanged, but cautioned costs will now go up in the low-to-mid single digit range, a higher estimate than previously.
Shares fell 19 pence to 3,316 pence in London morning trade.